During the German hyperinflation after World War I,transactions costs skyrocketed. As a result,not surprisingly,output

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The hyperinflation drastically reduced the purchasing power of money, causing prices to rise rapidly. In such situations, people tend to hold onto goods and assets that retain their value rather than money. As a result, transactions costs increased, thereby lowering output as it became harder and more costly to trade goods and services.

During the German Hyperinflation After World War I,transactions Costs Skyrocketed