What was one long-term consequence of Franklin D. Roosevelt’s raising the national debt during the New Deal?(1 point)ResponsesThe government’s increased debt resulted in a $1 trillion deficit.The government’s increased debt resulted in a $1 trillion deficit.Economic growth slowed to a level between 2 and 3 percent of GDP, which extended the Great Depression.Economic growth slowed to a level between 2 and 3 percent of GDP, which extended the Great Depression.The government cut spending by eliminating Social Security benefits.The government cut spending by eliminating Social Security benefits.The government cut spending to balance the budget, which extended the Great Depression.
Economic growth slowed to a level between 2 and 3 percent of GDP, which extended the Great Depression.
Economic growth slowed to a level between 2 and 3 percent of GDP, which extended the Great Depression.
The correct answer is: Economic growth slowed to a level between 2 and 3 percent of GDP, which extended the Great Depression.
To understand this consequence, it's important to learn about the context and actions taken during the New Deal. Franklin D. Roosevelt implemented the New Deal policies in response to the Great Depression in the 1930s. These policies involved significant government spending to stimulate the economy, provide relief for the unemployed, and promote recovery.
One key way that Roosevelt financed these programs was by raising the national debt. The government borrowed money to fund infrastructure projects, public works, and other initiatives. This increased the debt, as the government had to repay the borrowed funds with interest over time.
While the New Deal programs undoubtedly had some positive impacts, such as stimulating job creation and improving infrastructure, there were also long-term consequences. One of these consequences was that the high level of government debt resulted in slower economic growth. Economic growth refers to the increase in a country's total production of goods and services, as measured by its Gross Domestic Product (GDP).
Slower economic growth can be attributed to several factors. First, the burden of debt repayment often requires higher taxes or reduced government spending in the future. This can limit private investment and consumer spending, which are vital for economic growth. Second, excessive debt can undermine investor confidence and make it more costly for the government to borrow further. Third, the accumulation of debt may lead to inflation, which can erode the purchasing power of consumers and further hinder economic growth.
In the case of the New Deal, the high levels of government debt and the resulting reduction in private investment and consumer spending contributed to slower economic growth. This, in turn, extended the duration of the Great Depression, as the economy struggled to recover at a stronger pace.
It's important to note that the answer options mentioning a $1 trillion deficit or cutting Social Security benefits are not accurate in the context of Franklin D. Roosevelt's New Deal. These options describe more recent events or hypothetical scenarios and are not directly related to the consequences of Roosevelt's actions during the Great Depression.