America's Great Depression Chapter 11
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This is a 10-question quiz on Chapter 11: The Hoover New Deal of 1932 of America's Great Depression by Murray Rothbard.
- 1.What was considered the most important part of Herbert Hoover's 9-point plan for economic recovery?
- A.
Establishing the Public Works Administration to coordinate and expand Federal public works.
- B.
Establishing the Reconstruction Finance Corporation to lend to banks, industries, and credit agencies.
- C.
Direct loans of $300 million to the States.
- D.
Bankruptcy law reform.
- 2.What was the largest percentage increase in the rate of personal income tax in the Revenue Act of 1932?
- A.
8 percent
- B.
25 percent
- C.
100 percent
- D.
167 percent
- 3.What tax did Hoover describe as "one of the most economically and socially desirable—or even necessary of all taxes.”
- A.
The personal income tax.
- B.
The corporate income tax.
- C.
The estate tax.
- D.
The manufacturer's sales tax.
- 4.By the time of its admitted failure in early 1932, how much had Hoover's public works program increased Federal construction from its level at the beginning of the depression in 1929?
- A.
50 percent.
- B.
100 percent.
- C.
150 percent.
- D.
800 percent.
- 5.What is the great similarity between the initial actions of Hoover's RFC and Bush's TARP?
- A.
Both organizations refused to disclose their loan actitivies.
- B.
Both organizations were instrumental in ending the economic crisis.
- C.
Both organizations used the money to acquire auto manufacturers.
- D.
Both organizations refused to make loans to banks.
- 6.How much of the RFC's $3.9 billion in loan credits and cash went to banks?
- A.
9 percent.
- B.
17 percent.
- C.
52 percent.
- D.
75 percent.
- 7.Roughly what percentage of total Federal revenues did the RFC's $3.9 billion in loans represent in 1932?
- A.
34 percent.
- B.
50 percent.
- C.
78 percent.
- D.
115 percent.
- 8.What does Rothbard suggest caused the brief economic upturn during the summer of 1932?
- A.
The emergency RFC loans to the railroads.
- B.
A 14 percent decline in the money supply.
- C.
The Federal Reserve's purchase of government securities.
- D.
The increase in commercial loans made by the banks.
- 9.What does Rothbard inform us causes panic among both banks and government?
- A.
A decrease in the money supply.
- B.
Interest rates being reduced to zero.
- C.
Large-scale demand for cash.
- D.
A decline in the number of mortgage applications.
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