Question

which of the following describes policies used in the united states and europe during the 1930s that worsened the great depression?
a. establishing command economies and building up large military forces
b. closing stock markets and replacing them with government - owned banks
c. increasing taxes on imported goods and cutting government spending
d. hiring more government workers and launching construction projects

Explanation:

• Option A: Command economies and large military build - up were more associated with totalitarian regimes like Nazi Germany or the Soviet Union's long - term model, not typical US/Europe 1930s depression policies.
• Option B: The US didn't close stock markets permanently or replace them with government - owned banks. Stock markets were temporarily closed for reform (like the Glass - Steagall - related reforms), but not replaced.
• Option C: During the Great Depression, many countries (including the US with the Smoot - Hawley Tariff and some European nations) raised tariffs on imports (which led to trade wars and reduced global trade) and also cut government spending (which is contractionary in a depression, as Keynesian theory later showed that expansionary fiscal policy is needed). This worsened the depression.
• Option D: Hiring more government workers and launching construction projects was part of the New Deal in the US, which was an attempt to alleviate the depression, not worsen it.

Answer:

C. Increasing taxes on imported goods and cutting government spending