World War I Causes and US Entry · US History

The United States primarily funded its participation in World War I through:

  1. The complete seizure of all German-owned bank accounts
  2. Financial loans borrowed from the Soviet Union
  3. Strict government rationing of all consumer goods
  4. The sale of Liberty Bonds and increased income taxes
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Correct answer: The sale of Liberty Bonds and increased income taxes

The government raised about $23 billion through massive bond drives that appealed to citizens' patriotism. The 16th Amendment also allowed for higher income taxes to support the war effort.

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