Why Did More Than 1,000 Economists Warn Against the Smoot-Hawley

question 2

Multiple Choice

Why did more than 1,000 economists warn against the Smoot-Hawley Tariff of 1930, which Hoover went on to sign anyway?

• A)It would raise prices on most products and raw materials by impeding imports.
• B)It was too low of a tariff and thereby would not have an effect on the economy.
• C)It would allow international trade to flourish but destroy the American economy.
• D)It would repair the German economy, leading to animosity from other European nations.
• E)It would drastically raise the GDP and make it easier for European nations to afford American goods.

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Definitions:

Organic Product

A chemical compound of organic origin, typically resulting from the chemical reactions of organic compounds.

Reaction

A process leading to the transformation of one set of chemical substances to another.

Acetophenone

An aromatic ketone with the simplest structure, used as a building block in organic synthesis and as a fragrance in the perfume industry.

Benzene

A ring-shaped hydrocarbon known for its stability and aromaticity, widely used as a precursor in the manufacture of various chemicals.