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Single Answer MCQ
Q-00015076

How did the First World War affect the economic situation in India?

1

Decreased military spending

2

Increased taxes and prices

3

Reduction in unemployment

4

Strengthened local industries

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Sandeep Chaturvedi

Sandeep Chaturvedi

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Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. Increased taxes and prices

Solution:

The First World War led to increased military spending, which was financed by higher taxes and resulted in sky-rocketing prices, causing significant hardships for the Indian populace.

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