Question

John Maynard Keynes opposed the Allied Powers' plans to make Germany pay war reparations. Which three reasons for his opposition does the video mention? A.Germany wouldn’t have money to import British goods.
B.Germany would want revenge on the Allies.
C.Germany wouldn’t become an industrialized economy.
D.Germany's industries would add to competition in the global market.
E.Germany's economic troubles would destabilize Europe economically.

Answer 1

A.Germany wouldn’t have money to import British goods.
B.Germany would want revenge on the Allies.
E.Germany's economic troubles would destabilize Europe economically.

Answer 2

Answer:

A.Germany wouldn’t have money to import British goods.

C.Germany wouldn’t become an industrialized economy.

E.Germany's economic troubles would destabilize Europe economically.

Explanation:

John Maynard Keynes was an economist who left an important legacy on the role of the state for the promotion of economic development. In Keynes's view, fiscal policy (government spending) is a highly relevant tool for stimulating the economy in recessive times, as usually occurs in warring countries.

In Keynes's view, the drastic measures of reparation imposed on Germany would encapsulate the fiscal capacity of the German state. Consequently, Germany would lose its investment capacity (industrialization) and the country's aggregate demand would succumb, affecting imports of British and European products. Since Germany is a state of great economic importance, the whole European economy would feel the effects of the German fiscal crisis.