Final answer:
Modern liberalism was indeed a response to the economic and political crises of the Great Depression in the U.S. and the concurrent rise of fascism and communism in Europe.
Step-by-step explanation:
Modern liberalism in the United States was indeed a response to the Great Depression, as the economic devastation led to a reevaluation of classical liberal values, particularly regarding the role of government in the economy. During this era, President Franklin Delano Roosevelt's New Deal programs, such as the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Administration (FHA), and the Social Security Administration, were implemented to address the dire economic conditions and reduce unemployment, signaling a shift towards modern liberalism.
In Europe, the rise of fascism and communism served as alternative responses to the economic depression and political instabilities. Fascist regimes, such as Mussolini's in Italy and Hitler's in Germany, capitalized on public discontent and presented themselves as alternatives to liberalism and democracy, which many perceived to have failed. Concurrently, the apparent stability of the Soviet Union under Stalin, devoid of unemployment, drew interest from those disillusioned with capitalism.
Therefore, the assertion is True: modern liberalism in the U.S. was a response to the economic challenges of the Great Depression and the concurrent rise of authoritarian regimes and alternative political philosophies in Europe.