Question

When the Great Depression first began, what did Herbert Hoover propose as an economic solution?

A) Increased government spending.
B) Austerity measures and reduced government intervention.
C) Nationalization of key industries.
D) Expansionary monetary policies

Answer 1

Herbert Hoover proposed austerity measures and reduced government intervention as an economic solution to the Great Depression, but later implemented some public works programs and loans to businesses.

Step-by-step explanation:

When the Great Depression first began, Herbert Hoover proposed austerity measures and reduced government intervention as an economic solution. He believed in rugged individualism and limited government involvement in the economy. However, as the severity of the depression increased, Hoover implemented some public works programs, tax cuts, and created the Reconstruction Finance Corporation to issue loans to businesses. Ultimately, these measures were not sufficient to alleviate the economic crisis.