I believe the answer to this question is C.
Hope this helps
One thing you have to be clear about is which war. I'm taking it to be WWI.
There was a cash crunch after WWI. France was not any kind of a problem with the United States. It's not B.
I better get to the point. It has to do with the fact that the United States couldn't sell an abundance of manufactured goods. A has to do with that, but it wasn't exactly a decline in the manufacturing industry. It was that she couldn't sell what she had in inventory.
Inflation didn't become a problem in a post WWI environment. In fact, the problem was deflation and unemployment in the 30s, but that is a decade away from this question.
This is one of those questions that a guess is as good as an answer. Britain didn't import which is the same thing as a trade imbalance. I would pick E but I think that D is very possible. They are both worded the wrong way.There was a drop off in American Exports. And Farm prices cratered. Does that mean that Americans were buying more British goods. It is not D if America couldn't sell anything to Britain.
That makes E true. I'd pick E, but there's lots of reasons to pick almost anything else except B.
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