What happened when the German government increased the quantity of money in the German economy in the 1920s?
A) Germany experienced hyperinflation.
B) More people in Germany could afford luxury goods.
C) Unemployment increased.
D) Germany was able to repay all its foreign debts.

Question

Quizplus · Accepted Answer

When the German government increased the quantity of money in the German economy in the 1920s, Germany experienced hyperinflation. This means that prices for goods and services skyrocketed while the value of the currency plummeted, leading to economic instability and hardship for many German citizens.

What Happened When the German Government Increased the Quantity of Money