A major impact of the New Deal era was?

• A. Increased federal government spending
• B. Privatization of industry
• C. Decreased government regulation
• D. Return to laissez-faire economics

Answer: (A)

A major impact of the New Deal era is the expansion of the federal government’s role in the economy through increased spending to create jobs and provide relief. During the Great Depression, the government financed large-scale public works, relief programs, and social measures to jumpstart demand, reduce unemployment, and rebuild confidence. This shift toward direct federal investment and intervention is what marks the era, laying the groundwork for many programs that continued long after the 1930s.

Other options don’t fit with what happened. Privatizing industry would reduce government control, but the New Deal actually expanded government involvement. Decreased regulation is the opposite of what occurred, since new agencies and rules were created to oversee banking, labor, and industry. Returning to laissez-faire economics would mean pulling back government intervention, which contradicted the era’s approach.