Question

Which area of the economy benefited from the policies of the Harding administration? (5 points)

A) Labor unions
B) Foreign governments
C) Domestic businesses
D) Agricultural producers

Answer 1

The Harding administration's policies benefited domestic businesses through tax rate cuts and protective tariffs.

Step-by-step explanation:

The area of the economy that benefited from the policies of the Harding administration was domestic businesses. Harding implemented tax rate cuts and protective tariffs to support American businesses and reduce the debt incurred during World War I. The Emergency Tariff of 1921 helped protect U.S. agriculture and other industries from lower-priced imports, which increased American purchasing power but also inflated prices of goods.