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Ilya [14]
3 years ago
11

Which steps did the Hoover administration take to fight the early challenges of the Great Depression?

History
1 answer:
liq [111]3 years ago
8 0

Answer:

The correct answers are C, <em>calling for immediate federal funding to support financial institutions troubled by bank runs</em> and D, <em>creating a series of federal programs to provide employment on public works</em>.

Explanation:

Republican President Herbert Hoover (1874-1964) firmly believed the government should not intervene in the economic field. Because of this his administration only actively fought the economical crisis in early 1932, when unemployment was around 23%.

During that year Hoover's administration got Congress to approve the creation of the Reconstruction Finance Corporation (RFC), an institution to financially support states' governments and financial institutions. RFC saved a few banks but not enough to ease the crisis.

In mid-1932 Hoover signed the Emergency Relief and Construction Act that liberated public funds for public works to provide employment.

Options A, B and E are wrong:

When the government worked on the housing field for low-income individuals it was not through tax cuts; (A)

it did not urge private agencies to organize relief efforts, only to not cut wages during the beginning of the crisis; (B)

on the contrary, Hoover established a moratorium on foreign debts related to World War I (1914-1918) to stop the European crisis caused by the American crisis aiming to help both economies. (E)

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