Question

What was one way that the federal government helped pay for the war effort during World War I?

Answer 1

Your answer is that  they were selling government bonds. I hope I could help :)

Answer 2

The correct answer is: "increasing the monetary supply".

During WWI all the countries, included the US, abandonned the Gold Standard. The different curriencies were not tied to the gold reserves anymore and countries financed the massive war expenditures by printing money. They increased the amount of money in circulation in the economy, which led to generalized inflationary tendencies all over the world.