Question

Increased tariffs on imported goods in the 1920s resulted in
A) an increase in American exports.
B) increase in demand for European goods.
C) the collapse of the League of Nations.
Eliminate
D) European inability to repay World War I loans.

Answer 1

D. European inability to repay World War I loans.

Answer 2

The correct answer is D) European inability to repay WW1 loans.

Increased tariffs on imported goods in the 1920s resulted in European inability to repay WW1 loans.

During the 1920s, the United States wanted to secure the repayment for loans and other products loaned to Europe during World War 1. The United States gave cash to Allied countries and sent supplies to support the war effort in Europe. This created animosity and some problems between America and the European countries in debt. Indeed, increased tariffs on imported goods in the 1920s resulted in European inability to repay WW1 loans.