Final answer:
Germany faced economic challenges from reparations and hyperinflation, and political instability with government changes and rising extremism post-WWI.
Step-by-step explanation:
After World War I, Germany grappled with severe economic and political instability. The newly formed Weimar Republic faced daunting reparations imposed by the Treaty of Versailles, compounded by the loss of territory and assets. Economic woes were exacerbated by hyperinflation in 1923, caused by excessive money printing to pay for striking Ruhr Valley workers, making the German Mark virtually worthless. Politically, frequent changes in government coalitions and the rise of extremism, including the nascent Nazi party, indicated the fragility of the democratic system.
The challenges faced by the Weimar Republic set the stage for the eventual collapse of democratic governance in Germany. The economic hardships and political instability provided fertile ground for the rise of totalitarian regimes, ultimately leading to the Nazi regime and the outbreak of World War II.