In the early 1990s, European unemployment rose largely because of:
A) overvalued currencies.
B) low budget deficits.
C) high real interest rates.
D) high inflation.
E) undervalued currencies.

Question

Quizplus · Accepted Answer

High real interest rates led to decreased investment and therefore decreased economic growth, which in turn led to high unemployment rates in Europe during the early 1990s.

In the Early 1990s, European Unemployment Rose Largely Because Of