QUESTION IMAGE
Question
how did the smoot-hawley tariff act contribute to the great depression?
○ foreign countries refused to buy american goods due to its passage.
○ higher income taxes made it harder for families to buy goods.
○ fewer americans bought domestic goods due to increased cost.
○ successful american businesses forced foreign businesses to close.
The Smoot-Hawley Tariff Act raised U.S. import tariffs to very high levels. In retaliation, foreign nations imposed their own high tariffs on American exports, drastically reducing global trade and demand for U.S. goods. The other options are incorrect: the act did not involve income taxes, domestic goods became cheaper relative to imports (so demand for domestic goods did not drop for this reason), and it harmed rather than helped U.S. businesses by cutting off foreign markets.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
Foreign countries refused to buy American goods due to its passage.