Boom and Bust

Question 1

Businesses and industries in the 1920s most closely followed the buying demands of

Revolt · Accepted Answer

consumers.

Question 2

In 1929, unresolved economic issues led to

Revolt · Accepted Answer

a stock market crash.

Question 3

Which is an example of using credit?

Revolt · Accepted Answer

A consumer buys an item and promises to pay later.

Question 4

When banks closed as a result of the financial crisis of the Great Depression, depositors

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lost any savings they had kept at a closed bank.

Question 5

Look at the graph. Then answer the question.Which best explains what had happened in general by the end of October 1929 in the stock market?

Revolt · Accepted Answer

The market had lost much of its value.

Question 6

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy?

Revolt · Accepted Answer

Prices fell as consumer demand decreased, and the economy slowed down.

Question 7

Which best summarizes American economic issues at the end of the 1920s?

Revolt · Accepted Answer

overproduction, too many credit purchases, stock speculation

Question 8

What effect did the use of credit have on the economy in the 1920s?

Revolt · Accepted Answer

It made the economy weaker.

Question 9

How did consumers weaken the economy in the late 1920s?

Revolt · Accepted Answer

Consumers bought too many goods they could not afford.

Question 10

During which decade did an economic boom and bust occur in the United States?

Revolt · Accepted Answer

1920s

Boom and Bust Answers