Which of the Following Is True of the Hawley-Smoot Tariff

question 31

Multiple Choice

Which of the following is true of the Hawley-Smoot Tariff?

• A) It weakened the economy because other nations raised their tariff rates, which made it harder to sell their products and, in turn, gave them less money with which to buy American goods or repay their U. S. debts.
• B) It strengthened the economy by keeping foreign goods out of the country.
• C) It strengthened the economy by stimulating competition that brought prices down.
• D) It weakened the economy by making foreign products cheaper than American products.

---

Definitions:

Immediate Distribution

The process of allocating funds or assets to beneficiaries or accounts without delay following a specific event.

Deficit Balance

A situation where liabilities exceed assets or expenses exceed revenues, resulting in a negative balance.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Significant Operating Losses

Large financial deficits incurred from a company's core operations, indicating potential struggles in its business model or market.