Question

What type of action did President Hoover think the government needed to take to combat the economic downturn?

Answer 1

Answer : President Hoover thought that Reconstruction Finance Corporation (RFC) (1932) will provide railroads, banks, and other financial institutions with money for loans so that he can combat the economic downturn.

Explanation : From i) The Glass-Steagall Act (1932) that he made for getting commercial credit easier and additional business loans.

ii) The Emergency Relief and Construction Act (1932) he provided funds to the RFC to make loans for relief.

iii) Direct federal relief was provided to the unemployed people. As a result, he responded to the economic crisis with a goal of getting people back to work rather than directly granting relief.