1. In the years following World War One the German government printed massive

amounts of new money (German Mark) in order to make the reparation payments

required in the Treaty of Versailles. a. How would printing so much new money affect

the value of it?

Answer:The Treaty of Versailles forced Germany to grant territories to Belgium, Czechoslovakia and Poland and to give up all of its colonies. It forced Germany to reduce its military forces to 100,000 men and allowed for the occupation of the Rhineland by the Allied forces. Germany was forced to accept full responsibility for initiating World War I. France demanded huge reparation payments. The defeated powers felt the Treaty was unfair and soon violated the military and financial conditions. When Hitler came into power, he promised to take back the German territories and to demilitarize the Rhineland. The promise of becoming a world power again made the people support him. On September 1, 1939 Hitler invaded Poland. France and Britain declared war on Germany two days later. This was the beginning of World War II.