Economic Problems 1919-23 Flashcards
1
Q
Was the government bankrupt?
A
Yes
2
Q
What happened to the Ruhr?
A
The French occupied it
3
Q
Why did occupation of the Ruhr cripple Germany?
A
80% of iron factories were here
4
Q
What is hyperinflation?
A
The government didn’t have enough money to pay reparations for the war so they printed more money for the war but this money decreased in value so prices went up
5
Q
Did farmers profit from hyperinflation?
A
Yes
6
Q
Why was hyperinflation good for businesses?
A
It meant that they could pay off loans
7
Q
Why did people with savings suffer ?
A
Because the money became worth less and less so their savings would become less and less
8
Q
What happened because people found it difficult to buy what they needed?
A
People would be out on the streets hungry as they could would not be able to afford food
