Final answer:
The statement 'The government let business regulate itself' is not true regarding the effects of the New Deal on the government's role. The New Deal expanded the federal government's role in the economy and in protecting societal welfare. It also led to the creation of important regulatory agencies like the FDIC and SEC.
Step-by-step explanation:
All of the statements about the effects of the New Deal on the government's role except one are true. That exception is: 'The government let business regulate itself.' The New Deal era was characterized by significant increases in government intervention in the economy.
One of the most notable effects of the New Deal was the expanded role of the federal government. Various programs like the Social Security Act and the Works Progress Administration (WPA) illustrated this change. Furthermore, the legacy of the New Deal also includes a transformed public perception of the government's responsibilities toward economic security and societal welfare.
Interestingly, the size of the government also grew considerably during this period, and this aspect, coupled with government deficit spending, is still a topic of debate today. Rather than fostering a laissez-faire approach, the New Deal demonstrated a shift toward a more involved government, especially with the establishment of entities like the FDIC and SEC to oversee financial systems and protect the welfare state.