INTER WAR YEARS 1919 TO 1939
NAZISM IN GERMANY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the supply of money went up, and the value of money went down.
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the supply of money went up, and the value of money went up.
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the supply of money went down, and the value of money went down.
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the supply of money went down, and the value of money up
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Detailed explanation-1: -The hyperinflation made day-to-day survival arduous for ordinary Germans, most of whom were members of the working classes employed in factories. The exponential price rise made it difficult to obtain even basic goods like bread, meat, and coal to heat homes. Pay received one day was often worthless the next.
Detailed explanation-2: -In order to pay the striking workers the government simply printed more money. This flood of money led to hyperinflation as the more money was printed, the more prices rose. Prices ran out of control, for example a loaf of bread, which cost 250 marks in January 1923, had risen to 200, 000 million marks in November 1923.
Detailed explanation-3: -Hyperinflation in Germany. Children use bundles of banknotes as building blocks. In 1914, the exchange rate of the German mark to the American dollar was about 4.2 to one. Nine years later, it was 4.2 trillion to one.
Detailed explanation-4: -If hyperinflation continues, people hoard perishable goods, like bread and milk. These daily supplies become scarce, and more expensive, and the economy falls apart. People lose their savings as cash loses its value. For that reason, the elderly are often the most vulnerable to hyperinflation.