Question

What was one economic consequence of

President Franklin D. Roosevelt’s New Deal?
(1) Bank deregulation encouraged investment.
(2) Major industries were nationalized.
(3) Balanced budgets became the model for
economic stability.
(4) The role of the federal government in the
economy expanded.

Answer 1

The primary economic consequence of FDR's New Deal was the expanded role of the federal government in the economy, including increased regulation and the creation of programs meant to ensure economic stability and security for citizens.

Step-by-step explanation:

One economic consequence of President Franklin D. Roosevelt's New Deal was that the role of the federal government in the economy expanded. Prior to the Great Depression, government oversight in the banking and financial sector was minimal. The New Deal included the creation of the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits and the Securities and Exchange Commission (SEC) to regulate the stock market. These entities aimed to restore confidence in the banking system and prevent future economic crises. The New Deal also entailed a range of programs to spur economic recovery, impacting various sectors and establishing precedents for government intervention in times of economic distress.

Deficit spending became more accepted as a result of the New Deal, which was necessary to fund the plethora of government programs aimed at relief, recovery, and reform. The idea that the government played a role in the economic security of its citizens became widely endorsed. This increased acceptance of government intervention laid the groundwork for the modern welfare state and continues to be a topic of debate today.

Answer 2

There were of course many economic consequences of President Franklin D. Roosevelt’s New Deal, but the best option from the list is "(4) The role of the federal government in the economy expanded."