In order to stop hyperinflation a government can
A)introduce new money and ensure that the money growth remains stable
B)peg the exchange rate of the new money that is introduced to that of a stable foreign currency
C)allow the use of another country's currency as a medium of exchange
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All the options provided are viable strategies to combat hyperinflation. Introducing new money with a stable growth rate can help stabilize the currency. Pegging the exchange rate to a stable foreign currency can provide an anchor for the value of the domestic currency, and allowing the use of a stable foreign currency can immediately stabilize the economy by using a currency that is not experiencing hyperinflation.

In Order to Stop Hyperinflation a Government Can