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skelet666 [1.2K]
3 years ago
7

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

History
2 answers:
Sati [7]3 years ago
8 0
The main effect that the use of credit had on the economy in the 1920s is that it allowed people to make poor and risky investment decisions that led to a great amount of over-valuation of stocks. This led to the Great Crash in 1929.
ASHA 777 [7]3 years ago
3 0

The main effect that the use of credit had on the economy in the 1920s is that it allowed people to make poor and risky investment decisions that led to a great amount of over-valuation of stocks.

This led to the Great Crash in 1929.


Explanation:

The effect is overproduction, too many credit purchases, stock speculation.

The period from 1920-29 is usually referred to as the 'Roaring Twenties' as a result of it had been a time of noise, spirited action and economic prosperity. the primary warfare had been sensible for yankee business. plant production had up sharply to fulfill the wants of the war

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