Multiple Choice. Read the list and answer the question.

Question

• Unequal distribution of income
• Overextension of consumer credit
Overproduction of consumer goods
How did these factors affect the economy at the beginning of the Great
Depression?
(1 point)
They led to the failure of many monopolies, helping the economy become more
competitive.
They helped people purchase necessary goods, reducing the impact of the
economic decline.
They reduced demand for manufactured goods, leading to layoffs and high
unemployment.
They caused the stock market to crash, leading to bank failures and personal
bankruptcies.

Answer 1

They reduced demand for manufactured goods, leading to layoffs and high unemployment.