The "key ingredient" in ending a hyperinflation is to

Question

Quizplus · Accepted Answer

A hyperinflation is often caused by a large and unsustainable budget deficit, which means the government is spending more money than it can afford. To end the hyperinflation, the government must reduce its budget deficit, either by cutting spending or by increasing its revenue through taxes. This will ultimately decrease the demand for money, which will stabilize prices and end the hyperinflation. The other choices are not likely to be effective in ending a hyperinflation. Allowing the money supply to grow more rapidly would only exacerbate inflation, requiring wage contracts to be indexed more frequently would not address the underlying problem of a large budget deficit, and devaluing the currency in the foreign exchange market would only temporarily improve the competitiveness of the country's exports without solving the fundamental problem of a large budget deficit.

The "Key Ingredient" in Ending a Hyperinflation Is to