Hyperinflation causes inefficiency in the economy because:
A) people spend all their time working.
B) people spend all their time hunting for jobs.
C) people spend none of their time hunting for bargains.
D) people spend all their time hunting for bargains.

Question

Quizplus · Accepted Answer

In a hyperinflationary economy, the value of currency is rapidly decreasing, so people have to continually search for the best deals in order to secure their purchasing power. This takes up a great deal of time and effort, which could be better spent on more productive economic activities. As a result, the economy becomes less efficient, since people are not able to use their time and resources to their fullest potential.

Hyperinflation Causes Inefficiency in the Economy Because