Question

how was the german economy affected by having to pay reparations? select three answers. germany had a hard time raising money to make its payments. germany was obligated to raise billions of dollars to pay the allies. germany was able to pay off all of its debts with little trouble. germany was able to avoid the great depression. germany was forced to print money to pay its debts.

Explanation:

• After World War I, Germany faced huge reparation payments. It was difficult for Germany to raise such a large amount of money (billions of dollars) as required by the Treaty of Versailles. This led to problems in making payments.
• When Germany couldn't raise enough money through normal means (taxation etc.), it resorted to printing money. This hyper - inflationary measure was a desperate attempt to meet its debt obligations.
• Germany did not pay off its debts easily. Also, Germany was not able to avoid the Great Depression; in fact, its weakened economic state (partly due to reparation payments) made it more vulnerable to the global economic downturn.

Answer:

Germany had a hard time raising money to make its payments.
Germany was obligated to raise billions of dollars to pay the Allies.
Germany was forced to print money to pay its debts.