Which of the Following Was Not a Consequence of the American

question 76

Multiple Choice

Which of the following was not a consequence of the American policy of raising tariffs sky-high in the 1920s?

• A) European nations raised their own tariffs.
• B) The postwar chaos in Europe was prolonged.
• C) International economic distress deepened.
• D) American foreign trade declined.
• E) The American economy slipped into recession.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from a market transaction.

Equilibrium Price

A market condition where supply meets demand, and there is no inclination for price to change, leading to market balance.

Mutually Beneficial Trades

Exchanges that occur when all parties involved gain benefits or profits from the transaction.