In the United Kingdom between 1730 and 1920, during wartime, government spending tended to increase:
A) but the interest rate did not increase.
B) and the interest rate also increased.
C) but the interest rate decreased.
D) and the interest rate remained constant.

Question

Quizplus · Accepted Answer

During wartime in the UK between 1730 and 1920, government spending tended to increase and the interest rate also increased. This was because the government needed to borrow money to finance the war effort, which increased the demand for borrowing and therefore the interest rate.

In the United Kingdom Between 1730 and 1920, During Wartime