How did the federal government raise most of the money for the war effort during the First World War?

A) By raising tariff rates
B) By raising income taxes
C) By imposing a national sales tax
D) By borrowing

The federal government primarily raised money for the war effort during the First World War by borrowing. The government issued Liberty Bonds and Victory Bonds to the public to raise money for the war effort. While income taxes were also raised to some extent, they did not generate as much revenue as borrowing did. Tariff rates and a national sales tax were not major sources of revenue for the war effort.