Question

What is a problem that consumers faced in the 1920s?

Businesses invested in advertising to increase demand.
Businesses offered credit for people to easily buy goods.
Consumers had to pay higher taxes on goods.
Consumers became dependent on borrowing.

Answer 1

Consumers became dependent on borrowing.

Explanation: In the 1920s many purchases were made on installment plans and easy consumer credit. That widespread reliance on debt left households vulnerable to income drops and helped create the overextended consumer finances that contributed to the crash/Great Depression.