Question

Billions of constant $1999

1000
900
000
8
600
500
400
le 1920S
1920 1921 1922 1923 1924 1925 1926 1327 1920 1929
Public Domain
Which statement explains the cause-and-effect relationship between government policies in the 1920s
and the rise in gross domestic product? (1 point)
O Regulations against collective bargaining kept wages low.
O Regulations prohibited the importation of inferior products.
O High tariffs allowed domestic production to expand with little competition.
O High tariffs created beneficial conditions for exports to foreign markets.

Answer 1

The rise in gross domestic product in the 1920s was caused by high tariffs that allowed domestic production to expand with little competition.

Step-by-step explanation:

The correct answer is: High tariffs allowed domestic production to expand with little competition. In the 1920s, the U.S. government implemented high tariffs on imported goods, which made foreign products more expensive and less competitive compared to domestic products. This allowed American industries to grow and expand their production without facing significant competition, thus contributing to the rise in gross domestic product (GDP). The protective tariffs gave American businesses an advantage in the domestic market and stimulated economic growth during the 1920s.

Learn more about government policies and the rise in gross domestic product in the 1920s