How did liberty bonds work? a. the government agreed to pay the cost of housing soldiers. b. the government agreed to pay the cost of educating soldiers. c. people agreed to work for free in return for large payments after the war. d. people gave money to the war effort and received that money back with interest after the war.

The correct answer is D.People gave money to the war effort and received that money back with interest after the war.

The idea behind it was that the government would give the war bonds to people in exchange for money. The money would be used to fund the war effort. The bond was a promise that after the war, the government would pay the citizens back the money with interest where they could earn a hefty sum if they bought a lot of bonds.