Which economic condition of the 1920s was a
major cause of the Great Depression?
Farm prices rose dramatically.
Industry overproduced consumer
goods.
Banks were reluctant to lend money.
4.
Demand increased faster than supply.

The correct answer is Industry overproduced consumer  goods

As of July 1929, American industrial production began to fall, initiating what would be known as The Great Depression, this economic recession dragged on until October 24, when the New York Stock Exchange and the New Stock Exchange saw its stock values plummeted completely, causing thousands of shareholders to lose everything practically overnight. Thereafter, hundreds of commercial and industrial companies were closed, which drastically raised unemployment rates and made the effects of the recession even worse.

As a result, North American production got used to this growth, which increased day after day, mainly between the years 1918 and 1928. It was a scenario with many jobs, low prices, high production in agriculture and the expansion of credit that rampant consumerism is encouraged.

The problem for the United States was that Europe began to reestablish itself, which led to less and less importation from the United States. Now the American industry had no one to sell the exaggerated amount of goods to, and there was more to it than it was looking for. This led to a decrease in prices, a fall in production, and, consequently, an increase in unemployment. These factors caused profits to fall and trade to stall, causing the stock market's shares to fall, then breaking it down. In short, the 1929 crisis was due to overproduction, which was not prepared for the lack of demand, and ended up with all goods stranded.

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