The economic trend characterized the United States in the 1920s was that there was:
Increased consumer spending driven by purchasing with credit
What is spending?
The entire amount of money spent by people and households on final goods and services for their own use and enjoyment is known as consumer spending.
All private purchases of durable, nondurable, and service-related products and services are included in modern consumer spending measurements. Consumer spending can be seen as an economic sector that complements production, investment, and personal saving.
The outcome and primary driver of economic activity is consumption of final commodities, as opposed to the purchase of capital goods or investment property.
This is due to the fact that all things must first be produced before they can be consumed. The "supply and demand" theory's demand side includes consumer spending significantly. Consumer expenditure is an important economic factor and a major idea in economic theory.
Consumer expenditure statistics and reports are actively monitored by businesses, investors, and policymakers in order to estimate and plan future investments and policy decisions.
What is credit?
In the world of finance, this term can have many different interpretations, but in general, it refers to a legal arrangement whereby a borrower receives a sum of money or anything valuable and agrees to pay the lender back at a later time, usually with interest.
Credit can also refer to a person's or a business's creditworthiness or credit history.
For an accountant, it frequently refers to a bookkeeping entry that affects a company's balance sheet by either reducing assets or raising liabilities and equity.
A social relationship between a creditor and a borrower is the fundamental component of credit. The borrower accepts the debtor's promise to pay back the loan, frequently plus interest, or face financial or legal repercussions.
Hence, option C is the correct answer
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