Choose the below statement is true/false;
Hyperinflation refers to a situation when prices become phenomenally high.

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Detailed Solution

The above statement is True.
The economic crisis of 1923 heightened the political radicalisation in Germany. Germany participated in the First World War after taking loans, and the nation had to make up for the loss by paying back with gold. This action caused the depletion of gold reserves and exacerbated the scarcity of resources. When Germans showed unwillingness to pay in 1923, the French occupied Ruhr, a leading industrial area at the time, to claim their coal. Germany resisted passively and printed money recklessly. The value of the German mark fell as there was an increase in the circulation of printed money. Prices of goods reached an all-time high when the value of the German mark dipped. This economic crisis was called hyperinflation when prices rose to phenomenal heights.

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