Question

What does this diagram suggest about the strength on the United States economy in the 1920s?

Answer 1

I think its A.The U.S. economy was stronger than the economies of European countries. 3

Answer 2

Answer:

This diagram suggests that US economy was stronger than the economies of European countries in the 1920s.

Explanation:

At the end of World War I, the United States had become one of the main world powers, along with the United Kingdom and France, also winners.

But Britain and France faced great financial difficulties, including debts to the United States for loans during the war, which could only be remedied if Germany paid its debts for war damages.

Therefore, as a way to reactivate the economy and collect its credits, the United States made loans to defeated nations to subrogate itself in the collection of war damages in better conditions. In this way, it reactivated the economy of its allies and main trading partners, while obtaining new credits against Germany.

This economic play demonstrated the strength of the American economy during those years, which was consolidated after a tumultuous decade of the 1930s with the victory in World War II.