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What did the government do when defence expenditure increased in India during the First World War?

Answer and explanation

Correct answer: Increased taxes and raised war loans

The governing concept is the wartime financial burden created by the First World War. Britain needed additional resources to maintain military operations, so the colonial government increased taxes and raised war loans in India. These measures transferred much of the cost to Indian people. Therefore, option B is correct; the other choices were not methods of financing the war.

Related tags

Defence-ExpenditureWar-LoansTaxesThe First World WarKhilafatAnd Non CooperationThe First World War Khilafat And Non CooperationChapter 2: Nationalism In IndiaChapter 2 Nationalism In IndiaSocial Science

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