An effect of consumers buying fewer products in 1929 was that companies cut back on manufacturing. As consumer demand decreased, companies faced excess inventory and declining sales, leading them to reduce production in order to manage their costs and align with the lower demand. This contributed to the broader economic downturn that followed, including the Great Depression.
What was an effect of consumers buying fewer products in 1929?
The government began buying stock on margin.
The government raised interest rates on loans.
Companies cut back on manufacturing.
Companies invested in stock to make money.
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