Asked by Angela Filey on May 01, 2024
Verified
How did the federal government raise most of the money for the war effort during the First World War?
A) By raising tariff rates
B) By raising income taxes
C) By imposing a national sales tax
D) By borrowing
National Sales Tax
A tax applied to the sale of goods and services at the national level.
Tariff Rates
Import duties, also known as tariff rates, are financial charges applied to imported goods, influencing trade and economic policies.
Income Taxes
Taxes levied by governments on individuals' or entities' income, varying according to income levels and sources.
- Understand the causes and consequences of U.S. legislative and administrative responses to the First World War, including mechanisms for funding the war effort and managing the economy.
Verified Answer
PR
Pranjali RaturiMay 04, 2024
Final Answer :
D
Explanation :
The federal government primarily raised money for the war effort during the First World War by borrowing. The government issued Liberty Bonds and Victory Bonds to the public to raise money for the war effort. While income taxes were also raised to some extent, they did not generate as much revenue as borrowing did. Tariff rates and a national sales tax were not major sources of revenue for the war effort.
Learning Objectives
- Understand the causes and consequences of U.S. legislative and administrative responses to the First World War, including mechanisms for funding the war effort and managing the economy.
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