Question

During the 1920s, Germany experienced extremely high inflation and the collapse of its economy. What do many historians believe caused this situation?

A. the huge amount of money required to repair war damage in Germany
B. the requirement that Germany pay $12.5 billion in war damages
C. the huge amount of money required to create new industries in Germany
D. the requirement that Germany borrow money at high interest rates

Answer 1

Either A or C.

Personally I think it's C but I may be wrong.

Step-by-step explanation:

Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt. 'Passive resistance' meant that whilst the workers were on strike fewer industrial goods were being produced, which weakened the economy still further.

Sorry if it's wrong, but I hope it helps.