29638
AssignmentMultiple Choice

Trade Barriers

Question 29638 • GA-GSE Personal Finance and Economics

In response to the economic trends triggered by the Great Depression and the Hawley-Smoot Tariff Act, President Roosevelt signed the Reciprocal Trade Agreements Act.What was the main purpose of this act?

Answer
A
It banned tariffs within the United States for ten years.
B
It was designed to promote consumer spending through decreased taxes.
C
It allowed the US government to work with other countries to reduce tariffs.
D
It increased tariffs to boost protectionism.

Explanation

The Reciprocal Trade Agreements Act of 1934 authorized the president to negotiate trade agreements with other countries and lower tariffs in return for similar reductions. This was intended to encourage international trade, which had been weakened by high tariffs such as those in the Hawley-Smoot Act. The correct choice is C, allowing the U.S. government to work with other countries to reduce tariffs.

AI-written and checked against the verified answer.

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