Hyperinflations are usually made possible by
A)multinational corporations.
B)highly mobile international capital.
C)governments printing money rapidly.
D)higher and higher tax rates.

Question

Quizplus · Accepted Answer

Hyperinflations occur when a government rapidly increases the supply of money, causing its value to plummet and prices to skyrocket. This can be done through printing more money or simply adding zeros to the currency. Multinational corporations and highly mobile international capital may play a role in exacerbating hyperinflation, but they are not the root cause. Higher tax rates can be a symptom of hyperinflation, but they are not the cause.

Hyperinflations Are Usually Made Possible by