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What Were the Side Effects of the German Government's Fiscal

Question 43

Multiple Choice

What were the side effects of the German government's fiscal expansion which was designed to help the economy of the five new states (former East Germany) after the German re-unification?


A) Germany's trade surplus increased
B) the German mark depreciated relative to the currencies of non-European trade partners
C) there was a massive inflow of foreign funds
D) other European countries were forced to raise their interest rates
E) both C and D

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