During a period of hyperinflation,
A)creditors gain because their loans are repaid with dollars of higher value.
B)people tend to hold goods rather than money.
C)income is redistributed away from borrowers.
D)the real value of the national currency rises.

Question

Quizplus · Accepted Answer

During hyperinflation, the value of money decreases rapidly, so people prefer to hold goods that retain value rather than money which loses value quickly.

During a Period of Hyperinflation