Question

During World War I, the government raised money for the war effort by

Answer 1

Answer:

During World War I, the government raised money for the war effort by Selling liberty bonds.

Explanation:

Liberty bonds were sold to the American citizens in order to finance the war effort. With this bond, the money paid by Americans would go directly to the federal government. The federal government would then use it on valuable resources such as guns, ammunition, food, etc. In return, the citizen who bought the bond would gain interest on that bond. When the bond was cashed in, the citizen would receive more money than they originally paid to the government. This made it a great deal for both the federal government and citizens. The government had quick access to cash while American citizens would earn a small profit off their contribution.