The Vietnam War contributed to the high inflation of the 1960s because it __________.

Question

Quizplus · Accepted Answer

The Vietnam War led to increased government spending on military operations without a corresponding increase in productivity. This increased demand without an increase in supply, which led to inflationary pressure on prices. Additionally, the war was financed through deficit spending, which led to an increase in the money supply and further inflationary pressure.

The Vietnam War Contributed to the High Inflation of the 1960s