which of the following describes an economic affect of World War I on the United States
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During World War I, the United States experienced several economic effects. One major impact was an increase in domestic industrial production. As countries in Europe were consumed by the war, the demand for American goods surged. This led to expansion in various industries, such as steel, machinery, and textiles.
Another economic effect was the rise of the American financial sector. With Europe facing economic instability during the war, investors turned to the United States as a safe haven for their money. This allowed American banks and individuals to loan significant amounts of capital, which stimulated economic growth and investment within the country.
However, the war also resulted in inflation and disruptions to international trade. The increased demand for goods, coupled with the need for resources to support the war effort, led to a rise in prices. Additionally, the United States faced difficulties in exporting its products due to U-boat attacks by Germany, which hindered international trade.
To summarize, the economic effects of World War I on the United States included increased domestic industrial production, growth in the financial sector, inflation, and disruptions to international trade.