During the early 1920s, Germany experienced
A) negative inflation as a result of high money creation.
B) hyperinflation as a result of low money creation.
C) moderate price changes as a result of a recession.
D) hyperinflation as a result of high money creation.
E) hyperinflation as a result of rapidly increasing demand for money.

Question

Quizplus · Accepted Answer

Germany experienced hyperinflation during the early 1920s as a result of high money creation, which was done to pay off war debts and fund government spending. The value of the German mark plummeted, causing prices to skyrocket and a loss of confidence in the currency.

During the Early 1920s, Germany Experienced