Question

Question: What belief led Hoover to ask leading industrialists to maintain current wages in the weeks following Black Tuesday?

Responses:

He believed the surplus of goods could be sold to fix the economy.

He believed the crash was not part of a larger downturn.

He believed the industrialists would close their factories.

He believed the continuation of trade would save the banks.

Answer 1

He believed the crash was not part of a larger downturn.

Hoover thought the crash was a temporary shock and that voluntary cooperation (keeping wages and employment) would preserve purchasing power and confidence and avert a broader collapse.