Final answer:
The introduction of credit had a significant impact on the overall economy. It stimulated economic growth by increasing spending and investments. However, when credit dried up, it led to job losses and reduced economic activity.
Step-by-step explanation:
The introduction of credit had a significant impact on the overall economy. Credit allowed businesses and consumers to borrow money to make investments and purchases. This increased spending and stimulated economic growth. However, when credit dried up, businesses invested less and laid off workers, leading to a drop in demand and reduced economic activity. Financial institutions became less likely to make loans, worsening the economic conditions.