Hyperinflation is caused by
A)a constant increase in the money supply.
B)a high rate of growth in the money supply.
C)real GDP growing more rapidly than the money supply.
D)the money supply growing more slowly than GDP.

Question

Quizplus · Accepted Answer

Hyperinflation is caused by a high rate of growth in the money supply, where there is too much money in circulation and not enough goods and services to purchase with that money. This results in a rapid increase in prices, which can spiral out of control if not addressed.

Hyperinflation Is Caused by