In 1923, Germany experienced a very severe inflation. As prices in Germany rose, the demand in the foreign exchange market for Reichsmarks, the German currency of the time:

Question

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During the severe inflation in Germany in 1923, the value of the Reichsmark plummeted as the demand for it in the foreign exchange market fell due to its decreasing purchasing power. Simultaneously, the supply of Reichsmarks increased as people rushed to exchange them for more stable foreign currencies, further decreasing its value.

In 1923, Germany Experienced a Very Severe Inflation