Question

select the correct answer.
what could the us government have done to improve the economy in european nations before the great depression?
a. increase protectionism
b. decrease protectionism
c. export to european nations
d. buy european stocks

Explanation:

Before the Great Depression, high U.S. protectionist policies (like the Smoot-Hawley Tariff, though enacted just as the Depression began, pre-depression tariffs were already high) restricted European access to U.S. markets. This made it harder for European nations to earn U.S. currency to repay war debts and purchase goods, weakening their economies. Decreasing protectionism would have opened U.S. markets to European goods, boosting their export revenues and economic stability. Increasing protectionism would have worsened trade barriers. Exporting more to Europe would have increased their trade deficit, and buying European stocks would not have addressed the core trade and debt-related economic strains.

Answer:

B. decrease protectionism