Hyperinflation
A)was primarily a 19th century phenomenon
B)is always accompanied by extremely rapid growth in the money supply
C)is always accompanied by rapid shrinkage of the money supply
D)occurs when an economy grows too rapidly
E)is really nothing to worry about since it affects only nominal GDP (and not real GDP)

Question

Quizplus · Accepted Answer

Hyperinflation is characterized by extremely high and rapidly increasing prices which are caused by a rapidly growing money supply. This can be due to excessive printing of money or the government's inability to control the money supply. Hyperinflation can cause severe damage to an economy, leading to a loss of confidence in currency, hoarding of goods, and economic instability.