How did World War I affect the U.S. economy?
A. It limited the government’s regulation of the economy.
B. It strengthened the system of free enterprise.
C. It encouraged the increased production of food and materials.
D. It halted domestic production as most workers left to fight in the war.
Answers
After World War I, USA granted large amounts of loans to the UK, due to the post-war financial crisis of that country.
So US economy had a great time due to these loans, unlike the other war participants.
Moreover, US companies started manufacturing lots of domestic products and thus, never experienced any economic shortage due to stopping of the production of war related materials, as happened in other countries.
Option C is the correct answer:
It encouraged the increased production of food and materials.
World War I was the period of prosperity, was called Roaring Twenties.
The rapid growth was observed in the automobile industry, other industries such as oil, glass, and road-building also grew.
Tourism increased and car consumers had a much wider radius for their marketing.
Small cities prospered, and large cities had their best with a boom in the construction of offices, factories, and homes.
The new electric power industry upgraded both business and everyday life.