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How did the economic impacts of the Great Depression differ in the United States and in the Soviet Union?A.The United States instituted government regulation of business, while the Soviet Union did not.B.The United States suffered from high unemployment, while the Soviet Union did not.C.The United States borrowed money to fund government spending, while the Soviet Union did not.D.The United States eliminated all tariffs on foreign goods, while the Soviet Union did not.SUBMITarrow_backPREVIOUS

Question

How did the economic impacts of the Great Depression differ in the United States and in the Soviet Union?A.The United States instituted government regulation of business, while the Soviet Union did not.B.The United States suffered from high unemployment, while the Soviet Union did not.C.The United States borrowed money to fund government spending, while the Soviet Union did not.D.The United States eliminated all tariffs on foreign goods, while the Soviet Union did not.SUBMITarrow_backPREVIOUS

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Solution

The economic impacts of the Great Depression differed significantly in the United States and the Soviet Union.

A. The United States did indeed institute government regulation of business, particularly with the New Deal policies of President Franklin D. Roosevelt. The Soviet Union, on the other hand, already had a centrally planned economy, so there was no need for additional regulation.

B. The United States did suffer from high unemployment during the Great Depression, with rates reaching up to 25%. In contrast, the Soviet Union did not experience the same level of unemployment. This was largely due to the fact that the Soviet economy was insulated from the global market and its five-year plans kept people employed.

C. The United States did borrow money to fund government spending, particularly for the New Deal programs. The Soviet Union, however, did not borrow money for government spending. Instead, it financed its industrialization through the extraction of resources from its agricultural sector.

D. The United States did not eliminate all tariffs on foreign goods during the Great Depression. In fact, it passed the Smoot-Hawley Tariff Act in 1930, which raised tariffs on thousands of imported goods. The Soviet Union, being a socialist economy, did not rely on tariffs or international trade to the same extent as the United States.

So, the correct answer is B. The United States suffered from high unemployment, while the Soviet Union did not.

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