During the Great Depression, consumer spending was higher than ever in history.

Question 11 options:

True

False

Answer: The correct option is: False.

Explanation:

The Great Depression was the worst economic crisis the United States have faced in history. The main cause of the Great Depression was the stock market crash of 1929. As a consequence, millions of people lost their jobs:

By 1930 there were 4.3 million unemployed. By 1931, 8 million. In 1932 the number had increased to 12 million. By early 1933, almost 13 million.

For that reason, it is impossible that consumer spending was higher than ever in history, unemployed people weren't able to spend money like before.

False

Explanation:

The American economy entered a mild recession (decline) during the summer of 1929, as consumer spending slowed and unsold goods began to pile up, which in turn slowed factory production. Nonetheless, stock prices continued to rise, and by the fall of that year had reached stratospheric levels that could not be justified by expected future earnings