Question

Why did Germany's economy collapse in 1923? The economy collapsed as a result of the Holocaust. The value of Germany's currency dropped and inflation soared. Germany's loss of territory caused the economy's collapse. The economy collapsed as a result of the Great Depression.

Answer 1

the great depression

Answer 2

The correct answer is The value of Germany's currency dropped and inflation soared.

Thanks to the Treaty of Versailles (passed after World War I), Germany was responsible for paying billions of dollars in reparations to countries like Great Britain and France. However, their inability to pay off these debts resulted in the crash of their economy. Due to the amount of paper money they were making the mark (German currency) became worthless. The price of everyday items like bread and milk skyrocketed to astronomical prices. This era of total financial disaster resulted in hyperinflation.