Question

12/18 munit 12 assessment
possible poin
12.04 what effect did installment buying have on the u.s. economy?
the economy slowed because interest rates on installment plans were high.
the economy slowed because credit was unavailable to many consumers.
the economy grew as americans purchased goods that, without installment buying, they would have had to have saved for years to afford.

Explanation:

To determine the effect of installment buying on the U.S. economy, we analyze each option:

1. The first option claims the economy slowed due to high interest rates on installment plans. However, installment buying typically increased consumer spending, not slowed the economy, so this is incorrect.
2. The second option states the economy slowed because credit was unavailable. Installment buying made credit more accessible, so this is also incorrect.
3. The third option says the economy grew as Americans purchased goods they couldn't afford without installment buying (as they would have had to save for years). Installment buying allowed consumers to buy big - ticket items by paying over time, which boosted consumption and economic growth.

Answer:

The economy grew as Americans purchased goods that, without installment buying, they would have had to have saved for years to afford.