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During the 1920s, buying on credit contributed to a significant increase in consumer spending and economic growth, as it allowed individuals to purchase goods they might not have been able to afford upfront. However, this practice also led to unsustainable levels of debt, which became problematic when the Stock Market crashed in 1929. The reliance on credit exposed vulnerabilities in the economy, ultimately contributing to the onset of the Great Depression as many consumers struggled to repay their debts.
What else can I help you with?
Which term best describes buying on margin during the 1920s?
Paying ten cents on the dollar for stock
Prior to the 1920s the only major item purchased on credit had been?
a house
What happened to farmers debts during the 1920s?
the debts were erased because of the dsl tarrifs
100000000 dollar bill?
There's no such bill in the U.S. The highest denomination ever issued was $100,000. However other countries have issued enormous-denomination bills during periods of hyperinflation; e.g. Germany during the 1920s and Zimbabwe today. These bills are essentially worthless for buying anything and have a very small collector value - normally a couple of U.S. dollars at most.
Why were financial experts issuing warnings about business practices during the 1920s?
The banks would close because nobody could pay back their loans
1920s buying on credit?
Margin
Which major trend characterized the 1920s and continues today?
retail buying on installment of credit
Why were layaway and credit plans popular for buying things in 1920s?
it was easier
Why were layaway and credit plans popular for buying things in the 1920s?
it was easier
What where two reason for poverty in the 1920s?
Stock market crash due to buying on margin and overextention of credit to buy consumer goods.
How did Chinese immigration effect the economy during the 1920s?
we now have eggrolls and wontons
Which term best describes buying on margin during the 1920s?
Paying ten cents on the dollar for stock
What new way of buying goods besides cash started in the 1920s?
Credit became widely used for purchasing consumer good for the first time in the 1920s. Prior to this time it was only used by the very wealthy.
Why were layway and credit plans popular for buying things in the 1920s?
Credit began in the 1920's so people could buy things. They used it to buy a car and other items. Pay wasn't very high so credit gave them a chance to have things.
Why was buying stocks popular in the 1920s?
To get rich quicker
Who claimed credit for 1920s economic prosperity?
The Republicans
A major weakness of the period of prosperity in the 1920s was that?
unevenly distributed through the population, this is because during the early 1920s farmers found themselves caught in a recession while the urban centers were producing more in an age of consumer buying. by: Noman Hossain
