Question

Which cause-and-effect relationship occurred during the 1920s?

Answer 1

Answer:

The lack of regulation in the economy and the large supply of cheap credits generated an economic collapse that led to a major economic crisis in the country in the 1920s.

Explanation:

The 1920s is often considered a time of economic prosperity, parties and entertainment, but many people forget, that all this prosperity was the main cause of a very strong collapse that happened in the American economy, with the effect of the great depression in 1929, which spanned a decade and affected all capitalist countries economically and socially, mainly the USA.

The causes of this crisis were, mainly, the lack of regulation of the economy and the offer of cheap credits, added to a very low investment interest rate, causing most investors to put money only on the stock exchange and not in the most productive sectors. in the country, in this way, the productive sectors started to produce less, generating a large economic deficit, which led to stock devaluations and the collapse of the economic exchange.