(A) the war caused the US trade deficit (debt) to increase
(B) the war cost the US many billions of dollars
(C) ** the war led to an increase in the American economy
(D) the war created an unfavorable balance of trade
EXPLANATIONS BELOW
Concept note-1: -When the war began, the U.S. economy was in recession. But a 44-month economic boom ensued from 1914 to 1918, first as Europeans began purchasing U.S. goods for the war and later as the United States itself joined the battle.
Concept note-2: -The economy was mired in recession in 1914 and war quickly opened up new markets for American manufacturers. In the end, World War I set off a 44-month period of growth for the United States and solidified its power in the world economy.
Concept note-3: -The United States suffered a moderate economic recession from 1918 to 1919, but a mild rebound in the second half of 1919. The United States endured a more serious recession in 1920 and 1921, when the global economy collapsed.
Concept note-4: -The war was a catalyst for the great migration of African Americans, and those who returned from the war, finding inequality intact, demanded civil rights. In addition, the conflict heralded the rise of conscription, mass propaganda, the national security state and the FBI.
Concept note-5: -The total labor force rose from about 40 million in 1916 to 44 million in 1918. This increase allowed the United States to field a large military while still increasing the labor force in the nonfarm private sector from 27.8 million in 1916 to 28.6 million in 1918.