QUESTION IMAGE
Question
what effect did the overuse of credit have on the economy in the 1920s?
it made the economy stronger.
it made the economy weaker.
it made parts of the economy stronger.
it solved the problem of overproduction.
Brief Explanations
In the 1920s, widespread overuse of credit led consumers to take on unsustainable debt. When many could not repay loans, it destabilized financial institutions, contributed to the stock market crash of 1929, and weakened the overall economy by eroding consumer spending and business confidence.
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It made the economy weaker.