The Re-Unification of Germany Required a Large Increase in Government

question 50

Multiple Choice

The re-unification of Germany required a large increase in government spending, but the Bundesbank refused to accommodate the expansionary fiscal policy due to concerns about rising inflation.What was the outcome?

• A)rising real interest rates
• B)a deficit in the current account of the balance of payments
• C)an increase in the budget deficit
• D)a change in the composition of Germany's GDP
• E)all of the above

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