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At the end of World War 1, the Alled powers-the Uniled States, the United Kingdom, France, and taly-ineisted that the German govornment make payments, called

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At the end of World War 1, the Alled powers-the Uniled States, the United Kingdom, France, and taly-ineisted that the German govornment make payments, called reparatiens, to the Aitiod governments to pay for the damage Gernary had cauzed during the war. In 1919, the British oconomist John Maymard Koynes wroto the influential book The Economic Consequences or the Peace, in which he argued that the reparations for Wodd War l that Cermany was being forced to pay to the Alies would have devastating consequences, including poltical unrest because the Germen govemment would struggle to find the funds to make the payments. As mentioned in the chapter, during the 1920 s Germany experienced a hyparinfation Was there ikely a connection between the war repseations that Gemany was forcod to pay and the hyperinflaton? A. No, it helped stabilize the value of the Cerman currency, which heiped slow the growth of the fopecinglason that had begun during the war. B. Yes, Germany was forond to borrow large surns of money from its aliea, causing the purchasing power of its currency to rise too quicky. C. Yes, Gerrrany printed targe amounts of money to pay the reparations, resulting in a callopse in the purchasing power of its currency D. No, despite Keynes's daims, no connection can be found botween the war reparations and the Cerman hyperaffation. Which of the followng consequences of typerintletion would be feast likely to lead to poitical unrest in Germany in the 1920 s? A. Wokers may abandon their jobs because the wages they are paic have no purchacing power. B. Prices may rise so rapidly that money loses most of is value befote it can be spent. C. An economy may resort to barter, in which case, specializasion and productivity may be reduced. D. The purchasing power of money may rise so rapidly that it creates a shortage of goods

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