Question

Which of the following describes the US trade policy in the 1930s? Support efforts to expand trade with Asian markets. Open industrial and agricultural markets to free trade with other nations. Increase trade with other industrialized countries by lowering import taxes on all products. Increase the price of farm products and industrial goods by increasing the taxes on imports.

Answer 1

The best description of US trade policy in the 1930s would be "Increase the price of farm products and industrial goods by increasing the taxes on imports," since the US was going through the Great Depression and trying to increase prices. 

Answer 2

The correct answer is option d) Increase the price of farm products and industrial goods by increasing the taxes on imports

In the 1930s the United States had a trade policy whereby it sought to increase the price of farm products and industrial goods by increasing taxes on imports.

For over a decade, the United States had seen a stagnation in inflation, job creation and growth. Hence, by the 1930s, the government was left playing a balancing act where it wanted to gradually increase the prices of commodities to provide more money in the system and increase economic transactions.

By increase the duty on imports, the idea was to increase the price of farm goods and help the millions of debt ridden farmers who were finding it hard to survive.