Why was the German economy strained during the 1920s?

The German economy was primarily strained during the 1920s due to heavy reparations payments and hyperinflation following World War I. The Treaty of Versailles imposed significant reparations on Germany, demanding compensation for the war's damages, which placed a huge financial burden on the already weakened economy.

To pay these reparations, the German government resorted to printing more money, leading to hyperinflation. By 1923, this resulted in the value of the German mark plummeting, where people needed wheelbarrows full of money just to buy basic necessities. This economic turmoil severely undermined the stability of the German economy, eroded savings, and caused widespread poverty and social distress.

While high unemployment and military spending might have contributed to economic challenges, they were not the primary factors in the 1920s. The other options, such as frequent trade agreements, did not have the negative impact that heavy reparations and hyperinflation did during this tumultuous period.