Describe what caused Germany’s economy to suffer after World War I.(1 point)

Answer 1

Germany's economy suffered after World War I primarily due to the harsh reparations imposed by the Treaty of Versailles in 1919. The treaty required Germany to make substantial financial payments to the allied powers as compensation for the war, which placed a heavy burden on its economy. Additionally, the loss of territorial possessions, which included valuable industrial regions, further weakened its economic base. Hyperinflation followed in the early 1920s as the government printed money to pay reparations, leading to a collapse of the currency and severe social and economic instability. This combination of reparations, territorial losses, and hyperinflation significantly crippled Germany's post-war economy.