Question

How did consumer overspending contributed to the Great Depression?

O people were making too much money
people didn't understand credit and were spending money that they didn't have
the banks had too much money
people were spending money on only necessities

Answer 1

Consumer spending plummeted, factories slowed down production, and companies fired workers. The wages of those still employed were cut, making it hard for people to support their families. American consumers lost their homes to foreclosure and lost (or sold) many of their possessions.

Step-by-step explanation: