Question

Increased tariffs on imported goods in the 1920s resulted in

Answer 1

Increased tariffs on imported goods in the 1920's resulted in European inability to repay World War I loans.

Answer 2

The correct answer is:

European inability to repay World War I loans.

Since 1917, the U.S. had provided cash loans and supplies to the European allies, spending over $7 billion in government funds by the armistice of 1918. After that, an extra $3 billion was granted for relief and reconstruction purposes of both the Allies and new European nations.