What Was a Consequence of the Smoot-Hawley Tariff

question 19

Multiple Choice

What was a consequence of the Smoot-Hawley tariff?

• A) It lowered tariffs for more than a thousand goods, encouraging international trade and expanding the money supply.
• B) It led to a rise in stock market values as investors gained confidence in trade and delayed the onset of the Great Depression for a number of years.
• C) It caused the power of corporate lobbyists to decrease, as they were kept from interacting with Congress during the deliberations surrounding the bill.
• D) It raised tariffs and as a consequence boosted the sale of goods made domestically and helped prevent further layoffs in the early 1930s.
• E) It raised tariffs and provoked foreign countries to raise retaliatory tariffs and, as a consequence, made it harder for American farms and businesses to sell abroad.

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