Which statement best evaluates the impact of the 1929 stock market crash on Europe?

1. The United States established high export tariffs to Europe that reduced goods exported to Germany.
2. The United States promoted domestic policy initiates that reduced jobs on American bases in Europe.
3. The United States promoted isolationism that withdrew troops from Europe causing Germany to pay its own national defense.
4. The United States eliminated loans to Europe that caused Germany to default on its reparation payments to France.

Question

03-02-2019
History

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Which statement best evaluates the impact of the 1929 stock market crash on Europe?

1. The United States established high export tariffs to Europe that reduced goods exported to Germany.
2. The United States promoted domestic policy initiates that reduced jobs on American bases in Europe.
3. The United States promoted isolationism that withdrew troops from Europe causing Germany to pay its own national defense.
4. The United States eliminated loans to Europe that caused Germany to default on its reparation payments to France.

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EyeOfHorus EyeOfHorus · Answer 1 · 2019-02-03T18:46:46+01:00

4. Once loans to Germany were eliminated the German currency experienced devastating inflation. The German Reichmark essentially became akin to monopoly money. As an example: a loaf of bread in Germany cost several thousand reichmarks because the paper currency was literally worth almost nothing. This would be akin to today in this fictional scenario: You go into the store to buy a bag of doritos; you are used to paying $2.00, but the cashier rings you up and tells you it is now $200.00 dollars due to inflation and the collapse of the US economy.