|Question 7Verbal

Source Texts

Text
Mauricio Drelichman and Hans-Joachim Voth's research on the fiscal vulnerability of Philip II (who ruled not only Spain but other regions including much of Belgium from 1556 to 1598) builds on other studies of European early modern state finance, including Hoffman and Norberg's work on the relationship between state finance and political development. But Drelichman and Voth's unique contribution is their reconstruction of the earliest extant set of annual fiscal records for any sovereign state, which demonstrate that Philip's defaults were caused by short-term liquidity crises, not long-term unsustainable debts.
What does the text most strongly suggest about the value of Drelichman and Voth's research to their discipline?
Drelichman and Voth's research revealed the role of Philip II's debt defaults in exacerbating short-term liquidity crises.
A
Drelichman and Voth's research uses newly compiled evidence to eliminate one possible reason Philip II defaulted on his debts and to affirm another.
B
Drelichman and Voth's research builds on earlier work about a particular aspect of European early modern state finance by Hoffman and Norberg and corrects errors in that earlier work.
C
Drelichman and Voth's research presented a novel body of evidence supporting Hoffman and Norberg's hypothesis regarding why Philip II defaulted on several loans.
D