AMSCO 7.4 Exam Questions with Correct Answers

AMSCO 7.4 Exam Questions with Correct Answers How did different governments respond to economic crises after 1900? - Answer-- U.S. became more liberal - Germany, Italy, and Japan turned to the right - Russia implemented Five-Year Plans - German government printed more paper money to pay reparations - *John Maynard Keynes* - *New Deal* - Japan got out of Great Depression quickly by devaluing currency (lowering the value of money in relation to foreign currencies) - Japanese products became less expensive than imports - Oversea expansionism increased need for military goods and stimulated economy - *New Economic Plan (NEP)* - Stalin abandoned NEP and instituted the first *Five-Year Plan* - Stalin *collectivized* agriculture - *Institutional Revolutionary Party (PRI)* - Germany and other countries turned to *fascism* - Italy's Fascist government glorified militarism and brute force - *Corporatism* - *Totalitarian state* - *Spanish Civil War* - *Spanish Republic* Great Depression - Answer-- The economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s - Agricultural overproduction and U.S.'s stock market crash caused global economic downturn John Maynard Keynes - Answer-- Rejected laissez-faire ideal - Concluded that intentional government action could improve the economy - Governments should use *deficit spending* to stimulate economic activity - Cut taxes and increase spending Deficit Spending - Answer-Government practice of spending more than it takes in from taxes Franklin Delano Roosevelt - Answer-Democratic president who created the New Deal to counter the effects of the Great Depression