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 per cent of Ireland's GDP.
D) All of these options are correct.

Question

Quizplus · Accepted Answer

A) The Irish government took on huge debts to bail out failing banks: This is true. The Irish government bailed out its failing banks, including Anglo Irish Bank and Irish Nationwide Building Society, by taking on huge debts.
 
B) The Irish government had previously increased public sector wages and lowered tax rates: This is partly true. The Irish government had increased public sector wages during the 2000s, but tax rates were not lowered.

C) By 2010, the budget deficit was over 30 per cent of Ireland's GDP: This is also true. The budget deficit of Ireland reached over 30 percent of its GDP in 2010.

Therefore, option D, all of these options are correct, is the correct answer.

A Number of Governments in Europe from 2009 Onward,including Ireland,faced