(A) printing more currency.
(B) borrowing money from the Allied powers.
(C) increasing tariffs on imported goods.
(D) ** increasing tax rates and selling war bonds.
EXPLANATIONS BELOW
Concept note-1: -To help pay for the war, the government increased corporate and personal income taxes. The federal income tax entered the lives of many Americans. In 1939 fewer than 8 million people filed individual income tax returns. In 1945 nearly 50 million filed.
Concept note-2: -President Roosevelt settled on two major means of raising money: increased taxes and borrowing, through the sale of massive amounts of war bonds. Besides paying for the enormous costs of war, these measures would remove excess wages and other spendable money in a time of shortages, helping to keep a lid on inflation.
Concept note-3: -The plan called for financing the war to the greatest extent possible through taxation and domestic borrowing. Paying for the war through levies on current incomes would minimize inflationary pressures, promote economic expansion during the war, and promote economic stability when peace returned.
Concept note-4: -For this war, the federal government relied on a mix of one-third new taxes and two-thirds borrowing from the general population. Very little new money was created. The borrowing effort was called the “Liberty Loan” and was made operational through the sale of Liberty Bonds.