A hyperinflation is particularly costly to an economy because
A) the real tax burden imposed on the public increases dramatically.
B) there is a large redistribution of wealth from borrowers to lenders.
C) prices no longer indicate value or direct resource allocation.
D) the demand for real money balances increases significantly.
Correct Answer:
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Q39: If the money supply is unchanged, expansionary
Q40: A supply shock that is not responded
Q41: Cost-push inflation results from
A)workers' pressure for higher
Q42: The tax code
A)adjusts values of inventories for
Q43: The Humphrey-Hawkins Act of 1978
A)committed the federal
Q45: A classic example of hyperinflation occurred
A)in Japan
Q46: Inflation generates an excess burden whenever
A)it is
Q47: In the face of workers pushing for
Q48: Inflation that is higher than expected redistributes
Q49: The key reason that expected inflation can
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