Overproduction and underconsumption factored into causing the Great Depression by

Question

Responses
A causing falling prices on goods.causing falling prices on goods.
B forcing a decrease in mechanization.forcing a decrease in mechanization.
C leading to more spending than saving.leading to more spending than saving.
D scaring farmers into growing fewer crops.scaring farmers into growing fewer crops.

Answer 1

The correct response is:

A) causing falling prices on goods.

Overproduction in industries and agriculture led to a surplus of goods, which in turn caused prices to fall. Underconsumption, where consumers were not able to purchase enough goods due to lower wages and unemployment, exacerbated this issue, leading to decreased revenues for businesses and contributing to the economic collapse during the Great Depression.