Reunification of East and West Germany created which sequence of events?
I. an increase in German rates of interest
II. a boom in German output and a shift to the right of the German IS curve
III. large reunification costs financed by increased government spending
IV. an increase in rates of interest in ERM nations
A) IV, I, III, I
B) III, II, I, IV
C) I, II, III, IV
D) IV, III, II, I
Ans: B) III, II, I, IV
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