The Vietnam War affected the US economy during the early 1970s by

A. lowering the deficit.

B. leading to a recession.

C. creating stagflation.

D. raising unemployment.

B. leading to a recession.

The correct answer is B. The Vietnam War affected the United States economy during the early 1970s by leading to a recession.

During the war, the US government had to carry on a economy of war to solve the expenses of the conflict. Due to that reason, taxes were elevated and the monetary issue increased. That led to an almost 11% inflation during early 1970s, which generated an increasing on the unemployment rate.