Historically, hyperinflations have ended when monetary authorities
A)seized all the currency in circulation
B)ran out of metal to mint new coins
C)convinced the public that they were committed to halting the rapid growth of the money supply
D)convinced the public that they were willing to print large amounts of currency
E)convinced the public that they were committed to halting the shrinkage of the money supply

Question

Quizplus · Accepted Answer

Historically, hyperinflations have ended when monetary authorities convinced the public that they were committed to halting the rapid growth of the money supply. This is because hyperinflation is caused by an excessive increase in the money supply, and if the public believes that the monetary authorities are committed to stopping this increase, they will be more likely to hold onto their money and not spend it quickly, which can help to stabilize prices. Options A, B, D, and E are not accurate as solutions to end hyperinflation.

Historically, Hyperinflations Have Ended When Monetary Authorities