The correct answer is C) the US banks stopped investments in Europe and demanded repayment of foreign loans.
<em>The Great Depression affected Europe in that the US banks stopped investments in Europe and demanded repayment of foreign loans.</em>
Europe really suffered from the United States Great Depression. Unemployment rates got higher in countries such as Austria, Germany, and Poland. Some European countries established import quotas or more tariffs. The United States had loaned almost $8 billion dollars to European countries after World War 1, and when the crisis hit the US during the Great Depression, US banks stopped investments in Europe and demanded repayment of foreign loans.
Because the United States was interested in dominating the Middle East, European countries decided to partition the land to prevent an American invasion.
