(A) Inflation
(B) ** neutrality
(C) arms race
(D) rationing
EXPLANATIONS BELOW
Concept note-1: -Belgium had attempted to remain a neutral country for much of its history; however, the German invasions in the first and second World Wars made this impossible. Today, Belgium is a member of the European Union and NATO.
Concept note-2: -A neutral country does not take sides with belligerents during times of war.
Concept note-3: -Sweden and Switzerland are independently of each other famed for their armed neutralities, which they maintained throughout both World War I and World War II. The Swiss and the Swedes each have a long history of neutrality: they have not been in a state of war internationally since 1815 and 1814, respectively.
Concept note-4: -For centuries, the tiny Alpine nation of Switzerland has adhered to a policy of armed neutrality in global affairs. Switzerland isn’t the world’s only neutral country-the likes of Ireland, Austria and Costa Rica all take similar non-interventionist stances-yet it remains the oldest and most respected.