Although there were many factors that contributed to the Great Depression worsening, what combination of factors led to a growing recession in the months before the 1929 Great Crash?
A) overproduction and underconsumption
B) flexible money policies and low taxes
C) low tariffs and laws protecting labor unions
D) low interest rates and high wages for workers
E) inflation and low unemployment

Question

Quizplus · Accepted Answer

Overproduction led to a surplus of goods, resulting in a decrease in prices and profits for businesses. This, in turn, led to underconsumption as people had less money to spend due to the decrease in wages and employment opportunities. The combination of overproduction and underconsumption was a significant factor in the economic downturn.

Although There Were Many Factors That Contributed to the Great