How did easy credit affect the postwar economy?

A: Credit created debts that consumers could not afford to pay.

B:Credit gave people a false sense of security that eventually slowed the economy.

C:Credit initially slowed spending because people were required to complete applications.

D:Credit helped fuel the spending that caused the economy to grow.

During the 1920s, the federal reserve increased the money supply and kept interest rates very low, encouraging consumer spending and the brisk borrowing of money. business investment and the expansion of businesses grew rapidly during the 1920 to meet the needs of this huge consumer spending. however, during the crash of 1929, the federal reserve reversed its expansionary monetary policy and cut off the money supply by almost 30%, causing banks to not have enough currency on hand when depositors wanted their hard-earned money. after reading the prompt, what can you surmise happened next that contributed to the great depression? a) black tuesday b) collapse of banks c) high unemployment d) election of franklin d. roosevelt