Question

what was an effect of decreased consumer confidence in the late 1920s

Answer 1

higher cost of goods

because if you have less consumer confidence you spend less and businesses have to up prices to keep the same income

Answer 2

Rising debts was an effect of the decreased consumer confidence in the late 1920s.

A decrease in consumer confidence caused a slowdown to the spending by consumers. Consumer confidence impacts consumers’ spending and is also a signal of the health of an economy.

When the consumer confidence is not there, businesses may not sell much and as a consequence, they may default on loans that they may have taken.

On the other hand, consumers can become jobless as firms may fail and that can lead to people not being able to repay loans.