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Question
question 38 (mandatory) (1 point)
one consequence of the dawes plan and the young plan was
a) the expansion of rapid inflation.
b) european economies became dependent on the health of the american economy.
c) european governments became less and less worried about deficit spending.
d) a decline in the strength of the american stock market.
The Dawes Plan (1924) and Young Plan (1929) were related to German reparations and involved American loans to Germany. European economies, especially Germany, became reliant on American economic support (loans, investment). Option a: The plans aimed to stabilize, not expand inflation. Option c: Deficit spending wasn’t a main consequence here. Option d: The plans didn’t directly cause a decline in the American stock market (the 1929 crash had other causes). So the correct consequence is European economies’ dependence on the American economy.
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b) European economies became dependent on the health of the American economy.