Describing the international debt structure of the 1920s. A. European allies of the US in WWI borrowed money from the US to pay back earlier debts, thus incurring more debt.
B. The US forgave most of their European allies’ debts from WWI.
C. The US forgave Germany and Austria’s WWI debts.
D. France was the only healthy economy standing after WWI.
A. European allies of the US in WWI borrowed money from the US to pay back earlier debts, thus incurring more debt.
This statement accurately describes the debt structure of the 1920s, as many European countries had borrowed heavily from the US during World War I, not only for war expenses but also to repay pre-war debts. This cycle of borrowing led to an increasing debt burden for these nations, which struggled to recover economically after the war.