The New Deal: Policies and Programs

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Questions and Answers

What critical assumption underlies Keynesian economics regarding economic downturns?

Central banks should independently manage interest rates to control inflation and stabilize the economy.
The economy will naturally correct itself without government intervention, given enough time.
Government intervention through increased spending and reduced taxation can stimulate demand and job creation. (correct)
Minimal government intervention and tax cuts are sufficient to restore business growth and economic stability.

In what fundamental way did the New Deal approach to economic recovery differ from the Coolidge-Mellon policies of the previous decade?

Both approaches equally emphasized balancing the federal budget to stabilize the economy.
Both approaches relied on independent actions of the Federal Reserve to manage the money supply and interest rates.
The New Deal advocated for government action, public works, and welfare programs, while Coolidge-Mellon promoted minimal government intervention, tax cuts, and business growth. (correct)
The New Deal favored minimal government intervention and tax cuts, while Coolidge-Mellon emphasized government action and public works.

What were the intended effects of the 'Bank Holiday' declared during the Great Depression, and why was it considered a crucial step?

To allow government regulators to seize control of private banks and operate them under federal guidelines.
To temporarily halt bank operations, allowing for inspections and restoration of public trust in the financial system. (correct)
To allow foreign investors to acquire struggling banks, thereby injecting capital into the U.S. economy.
To permanently close insolvent banks, reduce competition, and consolidate the banking industry.

The Public Works Administration (PWA) was a key component of the New Deal. Besides building infrastructure and creating jobs, what broader economic goal did it serve?

To stimulate aggregate demand by increasing government spending. (A) Signup and view all the answers

Why was the Agricultural Adjustment Act (AAA) considered a controversial element of the New Deal's approach to alleviating the Great Depression?

It involved the government in paying farmers to reduce crop production, sometimes leading to the destruction of existing crops in a time of widespread hunger. (C) Signup and view all the answers

In what specific way did the establishment of the National Recovery Administration (NRA) represent a departure from traditional U.S. economic policy?

By establishing fair business practices and allowing industries to set prices and wages with government oversight. (C) Signup and view all the answers

What was the most significant contribution of FDR's actions during the Great Depression from a psychological perspective?

Restoring public confidence in the government and the economy. (B) Signup and view all the answers

How did the Great Depression and the New Deal fundamentally alter the role of the federal government in the United States?

By redefining the federal government's role to include greater intervention in economic and social affairs. (C) Signup and view all the answers

What was the primary goal of U.S. foreign policy during the period characterized by 'isolationism,' and how did this manifest in practical terms?

To avoid foreign entanglements and focus on internal growth and development. (A) Signup and view all the answers

According to Adam Smith's theories, how do free markets driven by self-interest ultimately benefit society as a whole?

By promoting economic prosperity through the 'invisible hand,' which guides individual self-interest to serve the common good. (D) Signup and view all the answers

How did Frederick Jackson Turner's frontier thesis influence the understanding of American democracy and identity?

It asserted that the frontier experience shaped American democracy and identity by fostering individualism and self-reliance. (C) Signup and view all the answers

What was the central issue in the 'Gold vs Silver' debate during the late 19th century, and what broader economic interests did it represent?

Whether to base the nation's currency on gold alone or to include silver, reflecting different economic interests and monetary policies. (B) Signup and view all the answers

Following the Civil War, what specific problem was the Civil Service Reform intended to address, and what methods did it employ?

Corruption and patronage in government hiring by establishing a merit-based system. (B) Signup and view all the answers

In what primary way does a 'protective tariff' aim to benefit a nation's economy, and what are its potential drawbacks?

By protecting domestic industries from foreign competition, potentially leading to higher prices for consumers and retaliatory tariffs from other countries. (A) Signup and view all the answers

How did machine politics operate during the Gilded Age, and what were its primary consequences for local governance?

By centralizing local government control through corruption and patronage, often undermining democratic processes. (D) Signup and view all the answers

What was the essence of 'The White Man's Burden' ideology, and how was it used to justify imperialism?

It justified imperialism by promoting the idea of 'civilizing' other nations, often masking economic and political exploitation. (A) Signup and view all the answers

According to Alfred Thayer Mahan, what is the relationship between naval power, strategic locations, and national strength?

A strong navy and control of strategic locations are essential components of national strength and global influence. (C) Signup and view all the answers

What key factors motivated American sugar growers to overthrow Queen Liliuokalani in Hawaii, and what was the ultimate result of their actions?

To secure economic advantages and ultimately led to Hawaii's annexation by the United States. (B) Signup and view all the answers

How did 'yellow journalism' contribute to the Spanish-American War, and what are the broader implications of this phenomenon?

By sensationalizing news and exaggerating events to shape public opinion and promote war, highlighting the power of media in influencing political events. (B) Signup and view all the answers

What were the primary goals of the Progressive movement, and how did 'muckrakers' contribute to achieving these objectives?

To reform against social injustices and corruption, with muckrakers playing a key role in exposing societal problems through investigative journalism. (A) Signup and view all the answers

Flashcards

New Deal Government

Expanded the federal role to combat the Great Depression, focusing on immediate relief, economic recovery, and long-term reform.

Keynesian Economics

Economic theory advocating for increased government spending and reduced taxation during economic downturns to stimulate demand and create employment.

New Deal vs. Coolidge-Mellon

Government intervention, public works, and welfare programs to alleviate the Great Depression versus minimal government, tax cuts, and business growth.

Bank Holiday Purpose

A temporary closure of all banks in 1933 to inspect their financial health and restore public confidence in the banking system.