Which of the following was not true of the eurozone during the Greek crisis?
A) Fear of a financial crisis throughout Europe discouraged investors and firms from moving funds into Europe.
B) By using a more stimulative monetary policy than it desired, the European Central Bank aroused concerns about potential inflation in the eurozone.
C) There was concern that the austerity conditions could weaken the country's economy further.
D) Greece, Spain, and Portugal focused their efforts on reducing tax rates in order to stimulate their economies.

Question

Quizplus · Accepted Answer

Greece, Spain, and Portugal did not focus their efforts on reducing tax rates during the Greek crisis. Instead, they were all required to implement austerity measures in exchange for bailout funds from the European Union and International Monetary Fund. These measures included spending cuts and tax hikes, which were unpopular and led to protests and social unrest in Greece.

Which of the Following Was Not True of the Eurozone