Overproduction And Underconsumption Factored Into Causing The Great Depression By

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Question

Overproduction and underconsumption factored into causing the Great Depression by A) causing falling prices on goods. B) forcing a decrease in mechanization. C) leading to more spending than saving. D) scaring farmers into growing fewer crops.

Answer

AnswerOverproduction and under-consumption factored into causing the Great Depression by causing falling prices on goods.Explanationwhen we talk about over production this means that goods and services are being produced at a very high rate causing the accumulation of unused products and services. it may be caused by improved techniques and growth in technology. A good example is in farming where due to improved techniques, farmers are able produce a lot of harvests. This may may lead to economy of the country collapsing.under-consumption is a state where the purchase or the consumption of goods and services is lower than the production and supply.Meaning that there is shortage of consumers.

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