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American Life in the Great Depression Answers

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1
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To buy goods on credit means to

A
pay cash for goods.
B
promise to pay for goods later.
C
promise to pay only a sale price.
D
pay only a discount price.
2
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President Harding’s economic policies during the 1920s contributed to the rise of

A
consumerism.
B
savings.
C
product prices.
D
crop prices.
3

Calvin Coolidge’s economic policies during the early 1920s helped people forget about the

A
Teapot Dome Scandal.
B
Wall Street Scandal.
C
Stock Investors Scandal.
D
Consumer Credit Scandal.
4

Read the excerpt from a presidential address given by Calvin Coolidge in 1925.I have been unable to determine how reduction in taxes is injurious [harmful] to business. Each tax reduction has been followed by a revival of business. If there is one thing above all others that will stimulate business, it is tax reduction. If the government takes less, private business can have more. If constructive economy in federal expenditure can be assured, it will be a stimulation to enterprise and investment.Which would be the best headline for this presidential address?

A
Tax Reductions Remain Unpopular in the 1920s
B
Tax Increases Are the Solution to 1920s Economic Problems
C
Tax Increases Have No Supporters in the 1920s
D
Tax Reductions Lead to Economic Growth in the 1920s
5

Look at the graph. During what years did consumerism cause the stock market to grow most?

Question illustration
A
1920–1921
B
1921–1924
C
1922–1925
D
1924–1929
6

For most of the 1920s, how did the growth of credit affect the stock market?

A
Investors bought more stocks on margin, and the stock market rose.
B
Investors bought more stocks with cash, and the stock market rose.
C
Investors took fewer risks on stocks, and the stock market declined.
D
Investors took more risks on stocks, and the stock market declined.
7

How did mass production affect consumers?

A
As factories became more efficient, they hired fewer workers, making jobs scarce.
B
The prices of mass-produced goods decreased, making many items more affordable.
C
Assembly lines reduced the variety of goods produced, so consumers had fewer choices.
D
Mass-produced goods tended to have more defects, leaving consumers with worthless products.
8

In the consumer culture of the 1920s,

A
people purchased nonessential goods on a regular basis.
B
people purchased only essential goods on a regular basis.
C
people reduced their purchasing of essential goods.
D
people reduced their purchasing of nonessential goods.
9

During the 1920s, more people began to acquire shares of stock using

A
credit.
B
cash.
C
installments.
D
speculation.
10

While consumerism during the 1920s boosted the economy, it also led to

A
more savings.
B
higher debt.
C
lower debt.
D
fewer stocks.

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