If a country like China experiences large increases in investment, then the country will inevitably experience hyperinflation.

Question

Quizplus · Accepted Answer

Large increases in investment do not necessarily lead to hyperinflation. Hyperinflation is a result of an excessive increase in the money supply, usually due to government overprinting of currency. Investment can actually spur economic growth and productivity, leading to a stable or even decreasing inflation rate.

If a Country Like China Experiences Large Increases in Investment