The Effect of the Harsh Budget Cuts Required by the European

Multiple Choice

The effect of the harsh budget cuts required by the European countries who made emergency loans to Greece in 2011 was:

A) the speedy return of the Greek economy to full employment.
B) an inflationary gap in the Greek economy.
C) that the Greek economy fell into a liquidity trap.
D) that the Greek economy became even more depressed and was unable to repay its debts in full.