During a period of hyperinflation:
A)debtors gain because they repay their debts with dollars of diminished value.
B)people tend to hold goods rather than money.
C)income is redistributed away from savers.
D)all of these.

Question

Quizplus · Accepted Answer

During hyperinflation, the value of money rapidly decreases, leading to a situation where debtors gain because they can repay their debts with dollars that have diminished value. This situation leads people to hold goods instead of money, as the value of goods can be preserved better than money. Additionally, income is redistributed away from savers, as the value of the money they saved gradually diminishes, leading to a decrease in their overall purchasing power. Therefore, all of the options are correct.

During a Period of Hyperinflation