Option 1: The terms outlined severe economic consequences for Germany.

Germany agreed to sign the Treaty of Versailles in June 28, 1919, because it had no other option at the moment, but it demanded terms that outlined severe economic consequences for them.

The treaty set Germany as the aggressor and responsible in the war and consequently, it was demanded to pay for the losses and damage caused to the Allies, the winning side, in the WWI (1914-18).

Germans also had to cede the territories they had obtained during the war, which reduced Germany’s population and territory by about 10 percent, and they were demanded a series of measures aiming to prevent that they never again pose a military threat to the rest of Europe, such as the restriction of its army to 100,000 men, the elimination of the general staff, the manufacture of armored cars, tanks, submarines, airplanes, and poison gas was, etc.

The restrictions imposed on Germany, along with other punitive actions, contributed to weakening Germany’s economy severely.