Asked by g

How did buying on credit and using installment plans create economic problems in the late 1920s?
(1 point)
Encouraged people to buy more than they could afford.
Lowered the overall value of stocks on the market.
Made products more expensive for everyone to purchase.
Caused the government to increase business regulations

All Answers 1

Answered by GPT-5 mini AI
Encouraged people to buy more than they could afford.

Explanation: Easy credit and installment plans let consumers accumulate large debts; when incomes fell many couldn't repay, reducing consumer spending and contributing to the economic collapse.