An economic effect of the French and Indian War on American colonists was that:

• A. Colonists experienced a significant decrease in agricultural productivity.
• B. The colonies gained direct control over their own trade policies.
• C. Britain imposed new taxes on the colonies to help pay for war debts.
• D. Colonial currency became more valuable due to increased British investment.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the historical context of the French and Indian War, which was fought between Britain and France from 1754 to 1763, involving their American colonies.
2. Step 2: Recognize that the war was expensive for Britain, leading to a large national debt that needed to be repaid.
3. Step 3: Analyze the economic impact on American colonists, focusing on Britain's response to the debt, which involved imposing new taxes on the colonies to help cover war expenses.
4. Step 4: Evaluate the other options given: a significant decrease in agricultural productivity, colonies gaining control over trade policies, and colonial currency becoming more valuable, and consider their historical accuracy in this context.
5. Step 5: Conclude that the primary economic effect was Britain's imposition of new taxes on the colonies, which later contributed to colonial dissatisfaction and unrest.