HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the Great Depression.
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Hitler’s command economy.
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hyperinflation.
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socialism.
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Detailed explanation-1: -In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.
Detailed explanation-2: -Hyperinflation can cause several adverse consequences. People may begin hoarding goods, such as food. In turn, there can be food supply shortages. When prices rise excessively, money decreases in value because inflation causes it to have less purchasing power.
Detailed explanation-3: -The Weimar government was still in a position to get a grip on the economy; instead, it chose to print yet more money in order to pay the reparation debt. By July 1922 prices had risen by some 700 percent, and hyperinflation had arrived.