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This question refers to the following information.
"Yesterday, December 7, 1941—a date which will live in infamy—the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan. The United States was at peace with that nation and, at the solicitation of Japan, was still in conversation with its Government and its Emperor looking toward the maintenance of peace in the Pacific. Indeed, one hour after Japanese air squadrons had commenced bombing…the Japanese Ambassador to the United States and his colleague delivered to the Secretary of State a formal reply to a recent American message. While this reply stated that it seemed useless to continue the existing diplomatic negotiations, it contained no threat or hint of war or armed attack….The attack yesterday…has caused severe damage to American naval and military forces. Very many American lives have been lost. In addition American ships have been reported torpedoed on the high seas….As Commander-in-Chief of the Army and Navy, I have directed that all measures be taken for our defense."
President Franklin D. Roosevelt, radio address, December 8, 1941
Which of the following statements best characterizes the economic consequences of the declaration of war described above?

choices

  1. Decreased trade with Asian nations precipitated economic recession in both the United States and Europe.
  2. The war-ravaged condition of Asia and Europe allowed the United States to emerge as one of the most prosperous nations on Earth.
  3. Cold War tensions isolated the economies of both the Soviet Union and the United States, leading to economic struggle for both nations.
  4. Japan was subsequently required to pay reparations to the United States, forcing it into a prolonged depression.

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