1. A prolonged contraction narrows domestic markets and leaves surplus goods and capital difficult to sell. Which propositions describe the resulting pressures and rivalry?
Germany and Italy demanded a redistribution of colonies as their influence grew. · European powers sought new markets as domestic sales of surplus output became difficult. · Britain and France were established colonial powers facing Germany and Italy as rising challengers. · The depression made it harder to sell surplus production and capital in domestic markets.
Explanation
Narrow domestic markets and unsold surplus encouraged European powers to seek new markets. Britain and France were established colonial powers, while Germany and Italy were rising challengers seeking colonial redistribution; the final statement reverses those roles.