Question

What caused the economic downturns in the late 1800s?

A. Production of goods was limited because of natural disasters

B. Production of goods was limited because of two wars.

C. Businesses did not make as many goods as people wanted.

D. Businesses made more goods than people had the money to buy.

Answer 1

Answer:

It was triggered by a collapse in cotton prices. A contraction in credit coincided with the problems in the cotton market, and the young American economy was severely affected. Banks were forced to call in loans, and foreclosures of farms and bank failures resulted.

Explanation:

Answer 2

Businesses made more goods than people had the money to buy caused the economic downturns in the late 1800's.

Answer: Option D

Explanation:

There was a tremendous increase in production due to the industrial revolution and development of factories.  Soon the society entered an amount of the time wherever the assembly was so high that things could not be oversubscribed therefore the corporations started suffering. When they suffered, so did the people and so did the banks so a huge crisis ensued.