A consequence of hyperinflation is that people
A)increase the quantity of money demanded.
B)receive higher real wage hikes, which increases their purchasing power for goods and services.
C)want to lend funds because interest rates are so high.
D)who make fixed-payment loans to others receive higher payments as inflation increases.
E)spend time trying to keep their money holdings near zero.

Question

Quizplus · Accepted Answer

During hyperinflation, the value of money decreases rapidly, so people try to minimize their money holdings to avoid losing purchasing power, leading them to spend quickly or convert money into more stable assets.

A Consequence of Hyperinflation Is That People