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Why Did Germany Experience Hyperinflation After World War I

Question 28

Multiple Choice

Why did Germany experience hyperinflation after World War I?


A) The supply of output was extremely limited due to capital destroyed during the war.
B) After the war, consumers spent heavily due to demand that had been building during the war.
C) The flood of foreign aid increased spending in the country.
D) To pay off war debts, the government increased the money supply.

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