Great Depression New Deal 2023

Which statement about Franklin D. Roosevelt’s New Deal program is most accurate?

•  the Trickle Down method of economic reform worked quickly

•  Social welfare programs were expanded.

• Government regulation of business was reduced.

• Government should tax the wealthy at 100%

The Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange

Commission (SEC), established during the New Deal, were important because they

•  increased the supply of money in the economy

• guaranteed loans to failing businesses and banks

• were designed to prevent another Great Depression from happening

• provided grants to unemployed workers

What was one factor that led to the Great Depression?

•  government regulation of the stock market

• high wages 

•  increased tax rates for corporations

•  reckless investment in the stock market

Much of the domestic legislation of the New Deal period was based on the idea that the

federal government should

• support big business instead of workers

•  assume some responsibility for the welfare of people and the economy

•  own and operate all the major industries of the country

• require local communities to be responsible for social welfare programs

A lasting effect of the New Deal has been a belief that government should

• own all the principal means of producing goods and services

• allow only  natural market forces to determine economic conditions

•  maintain a balanced federal budget during hard economic times

• assume responsibility for the well-being of its citizens

In the 1930s, shantytowns, often called “Hoovervilles,” sprang up across the United States because of President Herbert Hoover’s

•  support for the federal government to provide jobs for the unemployed

• refusal to provide direct federal aid to the homeless

• efforts to help farmers pay their mortgages

• emergency relief program to provide food to the poor

President Franklin D. Roosevelt supported domestic policies that

•  favored only one region of the nation

• attempted to increase the influence of the rich

• led to tax cuts for wealthy Americans

• provided direct help to those in need

Which statement best illustrates a basic idea of President Franklin D. Roosevelt’s New Deal?

• Communism provides the only real solution to economic problems.

• Unemployed workers should rely on local help rather than on the federal government.

• The United States reached its economic peak in the 1920s and is now a declining industrial power.

• The economy sometimes needs federal money to encourage business activity.

Which action by President Franklin D. Roosevelt challenged the principle of checks and balances?

•  frequently vetoing New Deal legislation

• trying to increase the number of justices on the Supreme Court

• taking over the Senate’s treaty ratification power

• desegregating defense industries

What do the following have in common?

Wages did not keep up with the cost of living

Overproduction of consumer goods

Excessive buying on credit

•  Keynesian Economic Theory

•  Features of a Bull Stock Market

•  Monopolistic Business Practices

• Causes of the Great Depression