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In Germany, inflation skyrocketed because of overprinting money during the depression. As a result, the German mark (currency) _____________________
Question 7 options:


increased dramatically in value


decreased dramatically in value


increased slightly in value


decreased slightly in value

Respuesta :

The answer would be B. Decrease dramatically in value. Fiat money is just paper, and it's value is only that of which the government says it is. If you print more money, goods will increase in price to compensate for the amount of money printed. This is why to keep a balanced economy money is printed as well as burned each year sometimes burn more sometimes print more to adjust prices accordingly.