INTER WAR YEARS 1919 TO 1939
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increasing global trade
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Raising tariffs on American imports
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Importing more American goods
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Lowering prices on exports
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Detailed explanation-1: -How Did European Countries React to the Smoot-Hawley Tariff Act? European nations greatly disfavored the Hawley Smoot Tariff. The Hawley Smoot Tariff prompted these countries to impose their own tariffs on foreign goods, especially those from the United States.
Detailed explanation-2: -It raised the price of imports to the point that they became unaffordable for all but the wealthy, and it dramatically decreased the amount of exported goods, thus contributing to bank failures, particularly in agricultural regions.
Detailed explanation-3: -How did many European countries respond to the Smoot-Hawley Tariff? They increased their own tariff rates.
Detailed explanation-4: -The Act and tariffs imposed by America’s trading partners in retaliation were major factors of the reduction of American exports and imports by 67% during the Depression. Economists and economic historians have a consensus view that the passage of the Smoot–Hawley Tariff worsened the effects of the Great Depression.