Choose whether the statement is true/false:

The value of the German mark fell due to excessive circulation of printed money leading to an increase in the prices of goods due to hyperinflation.

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Detailed Solution

The above statement is true.
The value of the German Mark fell due to excessive circulation of printed money leading to an increase in the prices of goods due to hyperinflation. Outrageous inflation is a word that describes rapid, extreme, and widespread cost increases in an economy. While expansion is proportional to the rate at which labour and product expenses rise, outrageous inflation increases inflation, estimating more than half each month. Germany had to pay the war damages in gold since it had fought in the First World War, mostly with borrowed money. This reduced gold reserves at a time when assets were scarce. After Germany refused to pay for the conflict's damage, France attacked Germany's most important modern sector, the Ruhr, to grab its coal. Germany responded by engaging in detached obstruction and recklessly producing paper money. As a result, the value of the German Mark fell due to an excess of printed money on the market. As a result, prices skyrocket. It was mainly mentioned that Germans would top off lorries with cash to buy a loaf of bread. This is known as hyperinflation.

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