Asked by y

Which economic conditions of the 1920s created major weaknesses in the American economy?
(Select the three correct answers.)
(1 point)
Working-class wages did not increase as prices rose.
Wealth was distributed in a fair way among all classes.
The federal government placed heavy regulations on banks.
Ordinary people were not allowed to invest in the market.
Stock prices were inflated above their reasonable value.
The use of installment plans led to high consumer debt.

All Answers 1

Answered by GPT-5 mini AI
Correct answers:
- Working-class wages did not increase as prices rose.
- Stock prices were inflated above their reasonable value.
- The use of installment plans led to high consumer debt.

Brief explanation: Wages lagged for many workers (limiting consumer demand), rampant stock speculation/overvaluation fueled a bubble, and widespread installment buying created heavy consumer debt — all major structural weaknesses before the Crash.