Final answer:
The Smoot-Hawley Tariff Act of 1930 is an example of protectionism because it raised tariffs to protect domestic industries, leading to a decrease in international trade as other countries responded with their own tariffs.
The Correct answer is c) It raised tariffs to protect domestic industries.
Step-by-step explanation:
The Smoot-Hawley Tariff Act is an example of protectionism because it exemplifies the government's approach to legislate policies that significantly raised tariffs on imported goods with the intention of protecting domestic industries. The answer to the student's question is c) It raised tariffs to protect domestic industries.
With the tariffs placed by Smoot-Hawley in 1930, foreign imports were intended to be limited, which would theoretically spur domestic production. However, this led to retaliatory tariffs from other countries on U.S. exports and negatively impacted international trade, supporting the viewpoint that protectionist measures can often be counterproductive.
Understandably, President Hoover's response to the economic conditions of the time, marked by overproduction and potential market gluts, especially in the agriculture sector, was to further endorse high tariff rates, a move that ultimately proved to be detrimental to both domestic and global markets.