Zimbabwe decided to fund deficit spending in the early 2000s by printing more and more currency.This method of obtaining revenue is called ________,and it resulted in ________ for Zimbabwe.

Question

Quizplus · Accepted Answer

Seigniorage is a method of obtaining revenue by printing more currency. Zimbabwe's decision to fund deficit spending in the early 2000s by printing more and more currency resulted in hyperinflation, as the excessive money supply led to a decrease in the currency's value and a rise in prices. Thus, the best choice is D, which correctly identifies the method of obtaining revenue and the outcome for Zimbabwe.

Zimbabwe Decided to Fund Deficit Spending in the Early 2000s