WORLD WAR I
CAUSES AND COURSE OF THE WAR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Many of her overseas investments had been liquidated
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Her industrial plant was growing antiquated
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As a result of immigration, she experienced a labor shortage
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There was a sharp rise in the cost of living
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E. The United States, Canada, and Germany were strong industrial rivals
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Detailed explanation-1: -The war had stripped Britain of virtually all its foreign financial resources, and the country had built up “sterling credits”-debts owed to other countries that would have to be paid in foreign currencies-amounting to several billion pounds. Moreover, the economy was in disarray.
Detailed explanation-2: -Thus, at the end of the war Britain had huge external debts. The war had led to economic boom due to a large increase in demand, production and employment. After the war, production decreased and unemployment increased. The government reduced bloated war expenditure to bring them into line with peacetime revenues.
Detailed explanation-3: -Factories began to ramp down production lines in the summer of 1918, leading to job losses and fewer opportunities for returning soldiers. This led to a short recession in 1918–19, followed by a stronger one in 1920–21. In the long term, World War I was a net positive for the American economy.
Detailed explanation-4: -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.