Question

What was the short-term effect of the introduction of installment plans on the U.S. economy?

A. Unemployment rose as fewer new products needed to be made.

B. Wages declined as businesses had less money to pay workers.

C. The economy grew rapidly as consumers spent more and more money.

D. Consumer goods sales fell as people paid off things they already had.

Answer 1

C. The economy grew rapidly as consumers spent more and more money.

Answer 2

The short-term effect of the introduction of installment plans on the U.S. economy is that the economy grew rapidly as consumers spent more and more money. The correct option among all the options that are given in the question is the third option or option "C". I hope the answer helps you.