One Important Unintended Consequence of the Smoot-Hawley Tariff Act Was

question 70

Multiple Choice

One important unintended consequence of the Smoot-Hawley Tariff Act was to:

• A)lessen the severity of the Great Depression by increasing exports.
• B)provide the federal government with an effective tool for exercising monetary policy.
• C)increase the efficiency of domestic automobile production.
• D)increase the severity of the Great Depression by causing other countries to retaliate,and thus leading to a decline in exports.
• E)increase the U.S.government budget deficit by $15 million.

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Definitions:

Federal Government Laws

Legislation enacted by the national government of a country that applies to all citizens and entities within its borders.

Gross Profit

a company's revenue minus its cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products.

Contribution Margin

The amount of money a product's sales generate over its variable costs, used to cover fixed costs and contribute to net profit.

Net Profit

The financial gain remaining after all expenses, taxes, and costs have been subtracted from total revenue.