For all countries suffering hyperinflations,during the period of hyperinflation they experienced extremely high rates of growth of their
A) GDP.
B) consumption.
C) money supply.
D) investment.
E) net exports.

Question

Quizplus · Accepted Answer

Hyperinflation is caused by an increase in the money supply. During this period, countries experience an extremely high rate of growth of their money supply, leading to a decrease in the purchasing power of their currency. This, in turn, leads to a decrease in consumption, investment, and net exports, and a decrease in GDP. Therefore, the only correct answer is (C) money supply.

For All Countries Suffering Hyperinflations,during the Period of Hyperinflation They