Question

Why was the Fordney-McCumber Act instated?

It lowered the price on imported goods
To protect domestic business by reducing foreign competition
To increase income tax and reduce tariffs
To decrease taxes on Canadian goods

Answer 1

Answer:The Fordney-McCumber Act of 1922 was a law that raised the American taxes on imported goods in order to protect the national factories and farms. However, the result of this measure was that high tariffs discouraged international trade. After five years of implementation, America’s trading partners, such as France and Germany, raised considerably their taxes on imported American goods, which represented a lower income of American goods in the European market. This resulted in agricultural depression and the increase in the cost of living in many cities of the US.