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Trade Barriers

Question 11 • GA-GSE Personal Finance and Economics

The Hawley-Smoot Tariff Act passed in January [___] . The act was passed by Congress [___] the start of the Great Depression.The purpose of the act was to [___] purchases of domestic goods.

Answer
A
increase
B
decrease

Explanation

The Hawley-Smoot Tariff raised taxes on imported goods, making them more expensive. Its purpose was to encourage people to buy more goods made in the United States, so it aimed to increase purchases of domestic goods.

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