1. How did the Reconstruction Finance Corporation represent a major shift in President Herbert Hoover's economic recovery efforts during the Great Depression? (8.13.d) A.It fevored small, local businesses over utility companies and large multinational corporations. B. It authorized direct government payments to farmers and ranchers to help them prevent foreclosures C. It offered direct government loans to large businesses,which contradicted Hoover's typical "Timited government stance. D. It represented an admission that state governments were better equipped to deal with the crisis than the federal government.

## Step 1<br />The Reconstruction Finance Corporation (RFC) was a government agency established during the Great Depression. It was created to provide financial support to state and local governments and to make loans to businesses to stimulate economic recovery.<br /><br />## Step 2<br />President Herbert Hoover, known for his belief in "rugged individualism" and limited government intervention, initially resisted direct federal intervention in the economy. However, the severity of the Great Depression led him to establish the RFC.<br /><br />## Step 3<br />The RFC represented a significant shift in Hoover's economic recovery efforts because it involved direct government intervention in the economy. This was a departure from Hoover's typical stance of limited government intervention.<br /><br />## Step 4<br />The RFC offered direct government loans to large businesses, which was a stark contrast to Hoover's previous policies. This move was seen as an admission that the federal government had to play a more active role in the economy during the crisis.