How did high tariffs such as the Smoot-Hawley Tariff worsen the Depression?
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Correct answer: They reduced international trade as other countries retaliated with tariffs of their own
The Smoot-Hawley Tariff raised duties on many imported goods. Other countries responded with tariffs of their own, reducing world trade and hurting exporters.
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More Causes of the Great Depression questions
- Which statement best describes the Federal Reserve's role in the early Depression?
- What is deflation, a major problem during the Great Depression?
- Which industry showed signs of weakness before the stock market crash and was important to the broader economy?
- Why did the stock market crash not by itself fully explain the Great Depression?
- How did falling consumer demand affect businesses during the early Depression?
- Which statement best summarizes the causes of the Great Depression?