Causes & Effects of the Bust Cycle

How were many Americans able to afford the new consumer products in the 1920s?

• people used credit to buy now and pay later

• employees implemented benefits to help purchase new products

• families took children out of school in order to work for new products

• laborers were able to steal products from their employers

What effect of the Dust Bowl is seen by the Okies and Arkies on the map?

• they were forced to remain in their homes

• they were forced to migrate east

• They were forced to work on their farms

• they were forced to migrate west

How did increased consumerism combined with laissez-faire economic policies contribute to the Great Depression in 1929?

• Government regulations forced businesses to raise prices, which caused consumers to stop spending money.

• Labor unions demanded higher wages, which forced factories to close and eliminated all consumer demand.

• The Federal Reserve printed too much money, which caused inflation and made all consumer goods worthless.

• Consumers bought goods on credit without saving, while the government failed to regulate banking and stock speculation which led to unsustainable debt.

What did widespread stock speculation and buying stocks on margin lead to in the late 1920s?

• the Dust Bowl

• the Civil War

• the Stock Market Crash

• the 19th Amendment

What trend from the 1920s does the image reflect?

• income increase for sweat laborers

• income equality

• income disparity

• does not reflect anything about income