Which of the Following Best Indicates the Policy That the United

question 61

Multiple Choice

Which of the following best indicates the policy that the United States government followed toward business during World War I?

• A) busting more trusts during the war years than in the preceding dozen years.
• B) deregulating most of the transportation and communications industries.
• C) operating the railroads and creating five thousand government agencies to supervise home-front activities.
• D) proclaiming that the war for democracy would be won by showing the world that private industry could do the job without regulation.
• E) imposing many new regulations on business and industry but supervised them with a minimum of bureaucracy.

---

Definitions:

Net Investment

The total spending on new capital assets minus the depreciation on existing capital.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting a decrease in value over time.

Investing

Dispensing money with the anticipation of making an income or profit.

Interest Rate

The percentage charged on borrowed money or paid on invested capital, reflecting the cost of borrowing or the reward for investing.