A. Increased military spending in Eastern Europe caused a complete collapse of the region’s economies.
B. Eastern European nations continued to maintain government-controlled command economies.
C. Eastern European countries increased military spending to keep the Warsaw Pact intact.
D. Many Eastern European countries began the transition to free-market economies.
The correct answer is D.
When the dismantling of the Soviet Union took place in the early 1990s, the former soviet republics in Eastern Europe that were under its influence, started the transition from a centrally-planned economy to a market economy. The economic decisions were not centralized anymore and, instead, started to be reached in the markets as the outcome of the free interactions of the economic agents: households, firms and public sector.
