Which of the following was one economic effect of the French and Indian War on American colonists?

• A. Colonists received direct financial aid from France.
• B. The British government increased taxes on the colonies to pay for war debts.
• C. The colonies were exempted from all import duties.
• D. Colonial trade with Britain was completely banned.

Answer: (B)

Verified step by step guidance

1. Understand the historical context: The French and Indian War (1754-1763) was a costly conflict for Britain, which led to significant war debts.
2. Recognize that to pay off these debts, the British government sought new revenue sources, including taxing the American colonies.
3. Recall that prior to the war, the colonies had relatively low taxes and some degree of economic freedom, but post-war policies changed this.
4. Identify that the British government increased taxes on the colonies, such as through the Stamp Act and Townshend Acts, to help cover war expenses.
5. Conclude that this increase in taxation was a major economic effect on the American colonists, leading to growing dissatisfaction and eventually contributing to the American Revolution.