America's Great Depression Chapter 11

1. What is the great similarity between the initial actions of Hoover's RFC and Bush's TARP?

Both organizations refused to disclose their loan actitivies.

Both organizations were instrumental in ending the economic crisis.

Both organizations used the money to acquire auto manufacturers.

Both organizations refused to make loans to banks.

2. What was considered the most important part of Herbert Hoover's 9-point plan for economic recovery?

Establishing the Public Works Administration to coordinate andexpand Federal public works.

Establishing the Reconstruction Finance Corporation to lend to banks, industries, and credit agencies.

Direct loans of $300 million to the States.

Bankruptcy law reform.

3. What tax did Hoover describe as "one of the most economically and socially desirable—or even necessary of all taxes.”

The personal income tax.

The corporate income tax.

The estate tax.

The manufacturer's sales tax.

4. What does Rothbard suggest caused the brief economic upturn during the summer of 1932?

The emergency RFC loans to the railroads.

A 14 percent decline in the money supply.

The Federal Reserve's purchase of government securities.

The increase in commercial loans made by the banks.

5. What does Rothbard inform us causes panic among both banks and government?

A decrease in the money supply.

Interest rates being reduced to zero.

Large-scale demand for cash.

A decline in the number of mortgage applications.

6. What was the largest percentage increase in the rate of personal income tax in the Revenue Act of 1932?

8 percent

25 percent

100 percent

167 percent

7. How much of the RFC's $3.9 billion in loan credits and cash went to banks?

9 percent.

17 percent.

52 percent.

75 percent.

8. Roughly what percentage of total Federal revenues did the RFC's $3.9 billion in loans represent in 1932?

34 percent.

50 percent.

78 percent.

115 percent.

9. 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?

50 percent.

100 percent.

150 percent.

800 percent.