Which of the following was a major consequence of the economic boom leading into the Great Depression?

The economic boom leading into the Great Depression resulted in significant increases in consumer spending, driven by easy access to credit and a culture that celebrated consumption. As people started to buy goods on credit, there was a corresponding rise in consumer debt. Many Americans were purchasing luxuries and necessities alike without fully considering their financial stability or the long-term implications of their borrowing. This accumulation of debt became unsustainable and contributed directly to the economic instability that characterized the Great Depression.

In contrast, the other options do not reflect the realities of the period. A balanced economy would imply a stable and sustainable growth rate across various sectors, which was not the case as the economy was heavily skewed towards consumer spending and stock market investments, leading to vulnerabilities. A reduction in factory production during the boom years would also contradict the observed trend, as production levels generally rose to meet the consumer demand. Lastly, although agricultural prices were volatile during this time, they did not stabilize; instead, they fluctuated wildly and later plummeted, exacerbating the struggles of farmers in the years leading up to the Depression.