Question

Question The Smoot-Hawley Tariff, signed into law in 1930, had long-lasting effects on America’s economy. Which of the following reflects that? (1 pt)(1 point) Responses Tariffs increased the supply of American goods but decreased the amount of profits overseas. Tariffs increased the supply of American goods but decreased the amount of profits overseas. Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close. Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close. The Senate was honored for their passage of the tariff, and the economy began to prosper. The Senate was honored for their passage of the tariff, and the economy began to prosper. Foreign investors, eager to make more profits in American markets, began to invest heavily in American products, thus boosting our economy.

Answer 1

The correct response that reflects the long-lasting effects of the Smoot-Hawley Tariff is:

**Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close.**

This response accurately describes the protectionist nature of the Smoot-Hawley Tariff and its repercussions on international trade relations, leading to reduced trade volume and economic difficulties for American factories.