To stop hyperinflations, a nation must
A) increase the budget deficit.
B) decrease taxes.
C) increase spending.
D) eliminate the budget deficit.

Question

Quizplus · Accepted Answer

To stop hyperinflation, a nation must eliminate the budget deficit. This means that the government must stop spending more money than it takes in through taxes and other sources of revenue. This will reduce the amount of money in circulation and help to stabilize prices. Increasing the budget deficit, decreasing taxes, or increasing spending would all exacerbate the problem of hyperinflation.

To Stop Hyperinflations, a Nation Must