At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes.We would expect that the rebuilding increased aggregate demand in
A)both the United States and Europe.
B)the United States but not Europe.
C)Europe,but not the United States.
D)neither the United States,nor Europe.

Question

Quizplus · Accepted Answer

The rebuilding efforts in Europe increased demand for capital goods, which were often supplied by the United States, thus increasing aggregate demand in both regions.

At the End of World War II Many European Countries