Why did consumer spending increase after World War II ended?

The depression and war had deprived people for so long they wanted to purchase goods.

The U. S. government created subsidies for businesses to increase mass production.

Businesses used the new advertising industry to create a demand for their products.

The price of consumer goods plummeted after the war because of inflation.

Question

Melody Davenport

History

23 March, 13:21

Why did consumer spending increase after World War II ended?

The depression and war had deprived people for so long they wanted to purchase goods.

The U. S. government created subsidies for businesses to increase mass production.

Businesses used the new advertising industry to create a demand for their products.

The price of consumer goods plummeted after the war because of inflation.

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Answers (1)

Know the Answer?

Mario Lam · Answer 1

B) The U. S. government created subsidies for businesses to increase mass production.

Explanation:

The Depression was actually ended, and prosperity restored, by the sharp reductions in spending, taxes and regulation at the end of World War II, exactly contrary to the analysis of Keynesian so-called economists. True, unemployment did decline at the start of World War II.