Which of the following was true of many American businesses in 1929?

A) In anticipation of an economic downturn in the 1930s, they had significantly reduced their inventories.
B) Having misrepresented their assets to obtain loans, they were overburdened with debt.
C) They enjoyed relatively high profits because of the expansion of foreign markets.
D) They incurred heavy losses of capital by shifting their investments from the United States stock market to less profitable European markets.

Economic Downturn

A period of declining economic performance across industries and markets, often characterized by reduced consumer spending and business investment.

Foreign Markets

Markets outside a company’s or country’s home market where goods, services, and securities are traded or sold, playing a crucial role in global trade and economic interdependence.

Inventories

Detailed lists of goods, materials, properties, or items held in stock by a business, organization, or entity, usually for the purpose of sale, use, or audit.