Germany could have avoided the high inflation that it experienced in the 1920s by
A)not directing so many of its resources toward preparation for World War II.
B)not increasing taxes so much on the German middle class.
C)not allowing the quantity of money to increase so rapidly.
D)using government policies to stimulate the economy more so than what was done.

Question

Quizplus · Accepted Answer

The high inflation in Germany during the 1920s was a result of rapidly increasing the quantity of money, which caused a sharp decrease in the value of the German mark. If the government had not allowed the quantity of money to increase so rapidly, inflation could have been avoided or controlled to a reasonable level. The other options are not directly related to the cause of inflation in the 1920s.

Germany Could Have Avoided the High Inflation That It Experienced