Question

"Some European nations have experienced a debt crisis. What caused this crisis?

Answer 1

Answer:

C. During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

Explanation:

During the 2000s, Europe experienced a monetary emergency that was predominantly because of financial issues. In times of bonanza, before the emergency, a few nations, among them Portugal, Ireland, Italy, Greece, and Spain, spent more cash than they had the option to gather with assessments. To fund themselves, these nations began to aggregate obligations. This caused a genuine emergency in the Eurozone, which was practically terminated. A recuperation program of grim nature was executed with the International Monetary Fund, causing numerous contentions between the populace and the Government, for the most part in Greece. At present, the circumstance is better, yet Europe has not yet completely recouped, disillusioning low monetary growth rates.

Answer 2

The correct answer is C.During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

A lot of money was taken by various countries and this money was not wisely invested. Therefore, there was no way for it to be returned, and this made the countries that gave the loan angry. The countries that owe money experienced a debt crisis.