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Countries often resort to imposing barriers to trade during difficult economic times. Recall the Great Depression, which began in 1929, where unemployment increased to 25 percent in 1933. One reason for both the depth and long duration of the Great Depression was
A. In 1930, the US passed the Smoot-Hawley Tariff Act, which increased average import duties to an all-time high of 59 percent in an attempt to stimulate domestic employment.
B. The serious implications of the Great Depression were inevitable given the stock market crash. x
C. In the early 1930s, the US pursued contractionary fiscal and monetary policy.
D. In the mid-1930s, the international organization called GATT, the General Agreement on Tariffs and Trade, was created to stimulate international trade.
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