U4D6 AH RPG ET

Which policy BEST explains why the U.S. economy grew but became unstable?

• High tariffs

• Increased regulation

• Laissez-faire policies

• War spending

Answer explanation

Laissez-faire policies allowed for minimal government intervention in the economy, leading to rapid growth but also contributing to instability due to unchecked market fluctuations and speculative practices.

Why did the Dawes Plan create long-term risk?

• It punished Germany too harshly

• It relied heavily on U.S. loans

• It avoided economic growth

• It reduced trade

Answer explanation

The Dawes Plan created long-term risk because it relied heavily on U.S. loans, making Germany's economy vulnerable to fluctuations in American financial support, which could lead to instability.

Which statement BEST evaluates Coolidge’s policies?

• They prevented all economic problems

• They balanced growth and equality

• They promoted growth but ignored risks

• They limited business expansion

Answer explanation

Coolidge's policies focused on economic growth, often prioritizing business interests while neglecting potential risks, such as market instability and income inequality. Thus, the best evaluation is that they promoted growth but ignored risks.

Why was the Kellogg-Briand Pact ineffective?

• It had no enforcement mechanism

• It caused war

• It excluded major nations

• It increased military power

Answer explanation

The Kellogg-Briand Pact was ineffective primarily because it had no enforcement mechanism, meaning that countries could ignore its terms without consequence, undermining its purpose of preventing war.

Which conclusion BEST answers the EQ?

• The 1920s completely changed America

• The 1920s had no lasting impact

• The 1920s created change but also reinforced old systems

• The 1920s ended economic growth

Answer explanation

The correct choice highlights that the 1920s brought significant changes, such as cultural shifts and economic growth, while also maintaining existing social structures, indicating a complex legacy rather than a complete transformation or stagnation.