Question

Which of these statements best explains how the Treaty of Versailles contributed to the economic crisis in Germany during the 1920s?(1 point)

1 answer

The Treaty of Versailles contributed to the economic crisis in Germany during the 1920s primarily by imposing heavy reparations payments on the country, which created significant financial burdens. These reparations led to hyperinflation, as the German government printed more money to pay off debts, resulting in a devalued currency and widespread economic instability. Additionally, the loss of territory and resources further weakened the German economy, exacerbating unemployment and social unrest, ultimately setting the stage for political extremism.