Question

1. which action by the federal government was one cause of the great depression?

abolishing the use of the gold standard
eliminating tariffs on foreign trade
failing to decrease the reserve requirement
refusing to regulate the stock market
clear all

Explanation:

To determine the cause of the Great Depression related to federal government action:

• Abolishing the gold standard was a response to the Depression (not a cause).
• Eliminating tariffs is incorrect; the Smoot - Hawley Tariff (increasing tariffs) contributed, not eliminating.
• Reserve requirement: The Fed actually raised reserve requirements (exacerbating issues), so "failing to decrease" is not accurate.
• Refusing to regulate the stock market: Lax regulation allowed speculative bubbles, a key cause of the 1929 crash and Depression.

Answer:

D. Refusing to regulate the stock market