After the First World War, Germany experienced an economic condition that can be best described as
A) hyperinﬂation.
B) cost-push inﬂation.
C) unanticipated inﬂation.
D) anticipated inﬂation.

Question

Quizplus · Accepted Answer

After the First World War, Germany experienced hyperinflation, which means there was an excessive increase in the general price level of goods and services in the economy. This happened due to the issuance of large amounts of paper currency by the government to finance the war, resulting in a loss of confidence in the currency and a rapid decline in its value. This led to a situation where people had to carry wheelbarrows full of cash to buy basic necessities, and the situation only improved when the government introduced a new currency and implemented strict monetary policies.

After the First World War, Germany Experienced an Economic Condition