Question

How did overproduction affect businesses in the 1920s? Check all that apply.

Answer 1

Businesses cut production, businesses closed, Banks lowered rates

Answer 2

The correct answers are A) Businesses cut production. D) Businesses closed. E) Banks lowered rates.

Overproduction affected businesses in the 1920s in that businesses cut production, businesses closed, and banks lowered rates.

During that decade, the United States lived a period of prosperity called the "Roaring 1920s." Americans bought many things on credit, such as cars, houses or furniture. However, overproduction affected businesses in the mentioned-above reasons. However, things got worse on October 29, 1929, when the US stock market exchange crashed, initiating the period called the Great Depression.