Which of the following was an economic effect of the Treaty of Versailles?

• A. The United States experienced a significant increase in government spending.
• B. Germany was required to pay large reparations to Allied countries.
• C. Russia received substantial financial aid from Germany.
• D. Britain and France eliminated all tariffs on imported goods.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the Treaty of Versailles, which was signed after World War I and primarily imposed terms on Germany and the defeated Central Powers.
2. Step 2: Identify the key economic provisions of the treaty, focusing on reparations, territorial changes, and trade restrictions.
3. Step 3: Recognize that one major economic effect was Germany being required to pay large reparations to the Allied countries, which had significant impacts on Germany's economy.
4. Step 4: Evaluate the other options by considering historical economic facts: the United States did not experience a significant increase in government spending due to the treaty, Russia did not receive financial aid from Germany, and Britain and France did not eliminate all tariffs on imports as part of the treaty.
5. Step 5: Conclude that the correct economic effect related to the Treaty of Versailles is Germany's obligation to pay large reparations to the Allied countries.