Describe what caused Germany's economy to suffer after World War I. (1

A. the rise of the Nazi Party
B. wartime reparations and hyperinflation
C. the Great Depression
D. disarmament

1 answer

The correct answer is B. wartime reparations and hyperinflation.

After World War I, Germany was required to pay significant reparations according to the Treaty of Versailles. These reparations placed a heavy burden on the German economy, leading to economic instability. Coupled with this financial strain, Germany experienced hyperinflation in the early 1920s, where the value of its currency plummeted, causing prices to soar and savings to become worthless. This combination of reparations and hyperinflation severely undermined Germany's economy in the years following the war.