A number of governments in Europe from 2009 onward, including Ireland, faced loan defaults as they could not repay the interest on their loans and required assistance from the European Union and the International Monetary Fund. Which of the following is true of the situation facing Ireland at that time?
A)The Irish government took on huge debts to bail out failing banks.
B)The Irish government had previously increased public sector wages and lowered tax rates.
C)By 2010, the budget deficit was over 30% of Ireland's GDP.
D)All of these options are correct.

Question

Quizplus · Accepted Answer

All of the options are correct. The Irish government did take on huge debts to bail out failing banks, had previously increased public sector wages and lowered tax rates, and by 2010, the budget deficit was over 30% of Ireland's GDP. These factors contributed to Ireland's financial crisis, which required assistance from the European Union and the International Monetary Fund.

A Number of Governments in Europe from 2009 Onward, Including