Question

Why did the economy begin to weaken in the late 1920s? Government regulation caused high tax increases. Businesses produced more goods than could be sold. Foreign competition slowed sales of American goods. Banks slowed borrowing, so people had less money.

Answer 1

Answer:

Government regulation caused high tax increases.

Explanation:

Ok so admittedly this is a complete guess but the economy weakened because of increased spending and failing sotckmarket speculation. In the 1920's credit was intorduced which allowed people to buy more than they could afford, this led to massive ammounts of debt. Stockmarket prices started soaring so many people because investors but going along with the debt stock markets crashed and people lost millions off dollars. Due to this, the government tried to reemberse the costly loss and thereofore raised taxes.

 Hope it helps. :D  <3

Answer 2

The correct answer are: "Government regulation caused high tax increases. " and "Banks slowed borrowing, so people had less money."

The causes of the Great Depression at the beginning of the 20th century are a subject of active debate among economists, and are part of a larger debate about the economic crisis, despite the popular belief that the Great Depression was caused by the Crac of 29. The specific events in economic matters that took place during the Great Depression have been studied in depth: active deflation, and commodity prices, dramatic drops in demand and credit, and disorganization of trade, resulting finally in the growth of unemployment and therefore of poverty. However, historians lack consensus to determine the causal relationship between various events and the government's economic policy as a cause of the Depression.