QQuestionEconomics
QuestionEconomics
Which of the following was a result of the Smoot-Hawley Tariff?
A. It reduced the supply of food in the United States.
B. It helped to lower food prices.
C. It helped to increase trade.
D. Europeans retaliated with their own protective tariffs.
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Answer
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Step 1:I'll solve this problem step by step, focusing on the historical context and economic implications of the Smoot-Hawley Tariff.
Step 2:: Understand the Smoot-Hawley Tariff
The Smoot-Hawley Tariff Act of 1930 was a protectionist trade policy passed during the early stages of the Great Depression. It significantly raised import duties on many foreign goods entering the United States.
Step 3:: Analyze the Economic Impact
The tariff was designed to protect American farmers and manufacturers by making imported goods more expensive. However, its actual consequences were quite different from the intended goals.
Step 4:: Evaluate the Specific Consequences
Let's examine each option carefully: - Option A: The tariff did not reduce food supply - Option B: The tariff did not lower food prices - Option C: The tariff did not increase trade - Option D: Europeans did retaliate with their own protective tariffs
Step 5:: Understand the International Response
When the United States imposed high tariffs, other countries responded by implementing similar protective measures. This led to a significant decline in international trade and worsened the economic conditions of the Great Depression.
Final Answer
Europeans retaliated with their own protective tariffs. Key Historical Context: - The Smoot-Hawley Tariff Act raised import duties to about 60% on many goods - This triggered retaliatory tariffs from European countries - The resulting trade war contributed to the deepening of the Great Depression - International trade volume dramatically decreased in the early 1930s
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