The Fiscal Shock in Germany Due to Reunification Caused the Bundesbank

Multiple Choice

The fiscal shock in Germany due to reunification caused the Bundesbank to pursue a monetary policy that:

A) was appropriate for Britain, since it had experienced a similar shock.
B) was appropriate for all the other ERM nations but not Britain.
C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock.
D) had poor timing, since the monetary action should have come before the reunification.