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German Reunification in 1990 Hurt the Entire European Economy Because

Question 1

Multiple Choice

German reunification in 1990 hurt the entire European economy because:


A) the other European states experienced increasing difficulty competing with the German economy.
B) cheap German labor from the east caused a European-wide decline in wages.
C) the costs of unification fueled inflation, leading the German Bundesbank to keep interest rates high, which reduced the availability of credit and undermined currencies in the rest of Europe.
D) the costs of unification prevented Germany from buying as many goods from its neighbors as it did in the past.

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