The German Hyperinflation of the early 1920s was caused by A) ...

[RRMR]

The German Hyperinflation of the early 1920s was caused by
 
  A) large deficits resulting from the high levels of war spending and falling taxes.
  B) rising oil prices after World War I caused a severe stagflation and hyperinflation.
  C) an overly aggressive monetary policy implemented to combat a severe recession.
  D) the German government raising funds for expenditures by selling bonds to the central bank.

Question 2

The smaller the fraction of an investment financed by borrowing
 
  A) the greater the potential return and the smaller the potential loss on that investment.
  B) the greater the potential return and potential loss on that investment.
  C) the smaller the potential return and potential loss on that investment.
  D) the smaller the potential return and the greater the potential loss on that investment.

[jliusyl]

Answer to Question 1

D

Answer to Question 2

C