Asked by Judie Alfaro on Apr 25, 2024
Which of the following statements is false?
A) Studies show that developing nations that have relied on import restrictions to protect domestic industries have had higher growth rates than similar nations pursuing more open economic policies.
B) The U.S. Constitution forbids individual states from levying tariffs.
C) The high tariffs of the Smoot-Hawley Act of 1930 and the retaliation they caused worsened the Great Depression.
D) The European Union has enhanced prosperity in Western Europe.
Smoot-Hawley Act
A United States legislative act passed in 1930, which raised tariffs on thousands of imported goods, contributing to the severity of the Great Depression.
Import Restrictions
Government-imposed limits or duties on the quantity or value of goods that can be imported into a country.
- Comprehend the connection between trade policies, economic expansion, and the prosperity of nations.
Learning Objectives
- Comprehend the connection between trade policies, economic expansion, and the prosperity of nations.