Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?
A)payment of massive war reparations required by the Versailles Peace Treaty
B)huge budget deficits financed by printing paper money
C)decreased desire to hold money on the part of the German people
D)All of the above

Question

Quizplus · Accepted Answer

All of the options contributed to the emergence of hyperinflation in Germany in the early 1920s. Germany was required to pay massive war reparations as per the Versailles Peace Treaty, which led to a huge budget deficit that was financed by printing paper money. This, in turn, decreased the desire to hold money on the part of Germans, leading to hyperinflation.

Which of the Following Contributed to the Emergence of Hyperinflation