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How did dimishee demand affect business and farmers in the 1920s?​

User Xinqiu
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In the 1920's the agricultural products were at their boom. Mechanization was introduced to improve farm technology. But lack of demand brought surplus products in the hands of farmers, prices fell. Farmers became loan defaulters resulting in poor performance in rural banks. But business boomed. There were more production and purchase of machines and electrical appliances through credit system and installment purchase which resulted in bankruptcy.

Hope this helps!:D

User Rafael Ferreira
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