How did William Howard Taft use U.S. economic power to address the issue of Latin American debt

Question

owed to European countries? (2 points)
He provided economic incentives to encourage Latin American countries to repay their debts more
quickly.
He helped Latin American countries boost exports to the U.S. so they could more easily afford to
repay their debts.
He paid off Latin American countries' debts to European countries so that they were indebted to the
U.S. instead.
He forced European countries to forgive Latin American debt by threatening to go to war if they
refused.

Answer 1

William Howard Taft used U.S. economic power to address the issue of Latin American debt owed to European countries by:

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

This approach was part of his "Dollar Diplomacy," which aimed to use economic investments and loans to expand U.S. influence in Latin America and the Caribbean, ensuring that countries would be more reliant on U.S. rather than European powers.