What was the RFC and what did it do?

What was the RFC and what did it do?

Reconstruction Finance Corporation (RFC), U.S. government agency established by Congress on January 22, 1932, to provide financial aid to railroads, financial institutions, and business corporations.

What are two weaknesses in the economy in the 1920s?

2. 1) Unequal distribution of wealth • 60% of all American families had an income of less than $2000 per year (i.e. they were living below the poverty line). Top 5% of people earned 1/3 of the wealth.

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy?

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy? Prices fell as consumer demand decreased, and the economy slowed down.

How did overproduction of goods in the 1920s affected consumer prices and intern the economy?

Overproduction or over supply of goods and services means that there is excess supply than the demand of the products and services that are being offered to the market. In 1920s it affected consumer prices and the economy where Prices fell as consumer demand decreased, and the economy slowed down.

What happens when consumers think the economy is struggling?

Which of the following best explains what happens when consumers think the economy is struggling? People spend more, businesses produce less, and unemployment rises. People spend less, businesses produce too much, and unemployment is low.

How did the overproduction of goods in the 1920s affect consumer prices and in turn the economy consumer demand increased prices decreased and the economy grew?

The correct answer is C. Consumer demand decreases, price decreases, and economy slowed. Overproduction is termes as excess supply of products which are being taken to the market. When production is high will lead to low prices and many goods which will remain unsold and it may result to unemployment.

How did the installment plan affect the economy?

The installment plan enabled people to buy goods over an extended period of time, without having to put down very much money at the time of purchase. With this plan people could purchase automobile, household appliances, homes, furniture, and other items.

What affected the use of credit have on the economy in the 1920s?

The effect that the use of credit had on the economy in the 1920s was that it made the economy weaker. Due to the prosperity in the economy, the so called “Roaring 20’s” consumerism was the constant in the country. Many people began to buy what did not needed but wanted.