Correct. The answer is b. The Progressive Party platform was making reference to the Harding and Coolidge administrations’ cooperation with private banks that made foreign loans to stimulate growth and increase demand for American products in developing markets. Under this policy—known to its opponents as “dollar diplomacy”—American banks made high-interest loans to Bolivia, El Salvador, Nicaragua, the Dominican Republic, and Haiti in the 1920s and received government guarantees of repayment. The U.S. military then occupied Nicaragua, the Dominican Republic, and Haiti for years in order to force repayment of debt.
Incorrect. The answer is b. The Progressive Party platform was making reference to the Harding and Coolidge administrations’ cooperation with private banks that made foreign loans to stimulate growth and increase demand for American products in developing markets. Under this policy—known to its opponents as “dollar diplomacy”—American banks made high-interest loans to Bolivia, El Salvador, Nicaragua, the Dominican Republic, and Haiti in the 1920s and received government guarantees of repayment. The U.S. military then occupied Nicaragua, the Dominican Republic, and Haiti for years in order to force repayment of debt.