Question

How did William Howard Taft use U.S. economic power to address the issue of Latin American debt owed to European countries? (1 point)

📝 Responses
( ) He provided economic incentives to encourage Latin American countries to repay their debts more quickly.

( ) He forced European countries to forgive Latin American debt by threatening to go to war if they refused.

( ) He paid off Latin American countries' debts to European countries so that they were indebted to the U.S. instead.

( ) He helped Latin American countries boost exports to the U.S. so they could more easily afford to repay their debts.

Answer 1

(X) He paid off Latin American countries' debts to European countries so that they were indebted to the U.S.

Explanation: Taft's "Dollar Diplomacy" used U.S. loans and investments to replace European creditors, tying Latin American economies more closely to the United States.