Multiple choice. Look at the diagram and answer the question.
Consumer debts accumulate, forcing people to stop making new purchases
Then consumer demand declines, causing manufacturers to reduce production
Then manufacturers lay off employees, causing the unemployment rate to rise.
What does the diagram illustrate?
A) the effects of buying on margin on creating the market preceding the Great Depression
B) the effect of overextension of credit on the severity of the Great Depression
C) the effects of stock speculation on the stock market crash that started the Great Depression
D) the effects of tariffs on the stability of the economy during the Great Depression
1 answer
B) the effect of overextension of credit on the severity of the Great Depression
1 answer