Question

Question 6 of 10

Answer 1

High tariffs damage the U.S. economy by making it hard to import crops .

Option - A

Explanation:

To protect the US industries Smoot-Hawley Traffic Act passed in June 1930 to impose increase in certain tariffs and effected some restrictions on trade. The increase in tariffs is made to boost the US economy.  

The high tariff is made to increase the cost of imported products and to increase domestic production. However, the increase in tariff in the year 1930 had made a huge impact in the economy. Because of restriction in imports and high tariff, the availability of goods in markets are reduced and it had lowered the income and unemployment has become a major issue.