Roaring Twenties: Culture and Economy · US History

What was the primary purpose of the 'Installment Plan' which became popular during the 1920s?

  1. To let consumers buy costly goods by paying small monthly amounts
  2. To regulate the stock market and prevent over-speculation
  3. To provide direct government subsidies to struggling small farmers
  4. To organize labor unions into smaller, more manageable units
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Correct answer: To let consumers buy costly goods by paying small monthly amounts

Installment buying fueled the consumer boom by making luxury items like cars and appliances accessible to the average middle-class family. This 'buy now, pay later' culture significantly stimulated industrial production but also increased personal debt.

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