Why did south vietnam experience a sharp economic decline after the american withdrawal?
a. american soldiers were no longer in south vietnam spending money.
b. rice exports had decreased while government spending had gone up.
c. there was a surplus of goods with no one to sell them to.
d. north vietnam would not accept south vietnamese goods for sale.

The correct answer is A.

The economy of South Vietnam experienced a recession when aggregate demand levels suddenly decreased, due to the progressive reduction of the size of the armed forces that remained in the country, and which came from the US and its allied countries, that had sided with South Vietnam during the war against communist North Vietnam.

An important budget deficit emerged during the last years of existence of the Republic of Vietnam, and also an hyperinflation crisis took place. South Vietnam decided to foster growth by implementing protectionist trade barriers to limit imports and estimulate exports.

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