How Did Latin American Governments Respond to the Decline of Their

question 28

Multiple Choice

How did Latin American governments respond to the decline of their export economies and access to foreign capital during the 1920s and 1930s?

• A) They created their own alternative international banking system.
• B) They worked to make domestic industry their main engine of economic growth.
• C) They withdrew from the world economy and became entirely self-sufficient.
• D) They convinced their citizens to accept a lower standard of living through an austerity program.

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Definitions:

Price Ranges

The spread between the lowest and highest price at which a good or service is sold in a market.

Price Elasticity

A calculation that shows the impact of price changes on the quantity of a good that is demanded.

Price Increase

A rise in the cost of goods or services, affecting the purchasing power of consumers.

Widgets

A generic term often used to refer to any hypothetical manufactured good or product.