The Smoot-Hawley trade bill of 1930, designed to save jobs and increase revenue for the federal government, resulted in
A) an increase in both employment and federal tax revenue.
B) a sharp reduction in trade and a decline in federal tax revenue.
C) the protection of jobs while maintaining the level of trade, but it did not increase federal tax revenue.
D) a decline in the volume of trade, but an increase in revenue from tariffs, which made it possible for the federal government to balance its budget.

Question

Quizplus · Accepted Answer

The Smoot-Hawley Tariff Act led to a sharp reduction in international trade as other countries retaliated with their own tariffs, which contributed to a decline in federal tax revenue and worsened the Great Depression.

The Smoot-Hawley Trade Bill of 1930, Designed to Save Jobs