Question

Which explains the effect of demobilization following WWI on the economy?

The global economy soared, which created stiff competition between U.S. and foreign industries.
The demand for war materials lessened, which weakened the global economy.
The global economy boomed as countries demanded industrial products to rebuild their territory.
The demand for industrial workers increased, which benefitted the soldiers returning from war.

Answer 1

B. The demand for war materials lessened, which weakened the global economy.

Step-by-step explanation:

Answer 2

Answer: Among the options given on the question the correct answer is option b.

The demand for war materials lessened, which weakened the global economy

Explanation: After the World War I the global economy has experienced a demobilization which means a depression on the economy. After war had stopped the demand for war materials and arms was lessened. As a result thousands of war materials factories were closed down since the countries had cancelled the order. So thousands of workers lost their job and found themselves unemployed.

So this factors had a negative impact on the global economy.