Asked by Keyla Ortiz on Jul 24, 2024
Verified
Statement I: Many economists believe that the Smoot-Hawley Tariff of 1930 made the Great Depression a lot worse than it might have otherwise been.
Statement II: Tariffs were considered purely a revenue-raising device in the 19th century,rather than a method to protect American industry from competition.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Smoot-Hawley Tariff
A U.S. law enacted in 1930, which raised tariffs on over 20,000 imported goods to record levels, leading to a significant decrease in international trade.
Great Depression
A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929.
Revenue-Raising
Activities or policies implemented to increase the financial income of an organization or government.
- Analyze the advantages and disadvantages associated with tariffs, quotas, and the adoption of free trade policies.
Verified Answer
KP
Kaiyla PayneJul 27, 2024
Final Answer :
A
Explanation :
Statement I is widely accepted by many economists who have studied the Great Depression and the impact of the Smoot-Hawley Tariff. However, statement II is false. Tariffs have been used to protect American industry from foreign competition since the early days of the United States, and this was one of the main motivations for the Smoot-Hawley Tariff.
Learning Objectives
- Analyze the advantages and disadvantages associated with tariffs, quotas, and the adoption of free trade policies.