Lecture 20 - Key Terms and Questions

Question 1

Who are these guys? What did they do? What impact did it have on the economy?

Answer 1

• Smoot and Hawley
  
  • Raised tariffs on imported goods.
  • They did not cause the recession.

Question 2

At its maximum during the Great Depression unemployment reached approximately ___ percent of the labor force. [Count workers employed in government emergency work programs as unemployed, as was the policy at the time, although this isn’t crucial to your answer.

Answer 2

25

Question 3

The Great Contraction of 1929-1933 was an international event in which many nations suffered contractions of industrial production. Some, however, suffered more than others. Which of the following industrial nations experienced the least severe contraction in industrial production because (I claimed in class) the finance minister adopted a Keynesian policy of deliberate deficit-financed expansion of government spending?

Answer 3

Japan

Question 4

How many banking panics have there been in Canada?

Answer 4

zero

Question 5

To what do economic historians attribute Canada’s relative success in avoiding banking crises?

Answer 5

• nationwide branch banking
• diversifie banking portfolios

Question 6

According to the class lecture the failure of one of the following banks greatly intensified the banking panic of 1930. Which was it?

Answer 6

Bank of United States

Question 7

Peak song during Great Depression?

Answer 7

spare a dime?

Question 8

What day is the minimum of the Great Depression?

Answer 8

May 1933

Question 9

Who’s rule did the Fed know about, but did not implement that could have prevented the Great Depression?

Answer 9

Bagehot

• government spending in time of recession