Explain why businesses paid workers twice a day during the hyperinflation in Germany after World War I and why workers spent their incomes as soon as they were paid.
Choose the correct statement.
A. As part of the Treaty of Versailles in 1919, German businesses were required to pay their workers twice a day. Workers were not allowed to save their income, so they spent it right away.
B. Businesses paid workers twice a day so that employees would not leave their jobs and search for employment elsewhere. Workers spent their incomes as soon as they were paid to minimize the loss in value of their income.
C. Workers spent their incomes as soon as they were paid because they were concerned that the Allies would change German currency to the U.K. pound. Employers shared this concern.
D. Businesses paid workers twice a day to encourage them to work harder. Workers spent their incomes as soon as they were paid because of a fear of people stealing their money.c
