Growth in the money supply is typically extremely high for countries experiencing periods of
A) hyperinflation.
B) recession.
C) depression.
D) recessionary gaps.
E) low demand.

Question

Quizplus · Accepted Answer

Growth in the money supply is typically extremely high during periods of hyperinflation, as governments or central banks may increase the money supply to artificially stimulate economic growth or government spending. This can lead to a devaluation of the currency and ultimately, high levels of inflation.

Growth in the Money Supply Is Typically Extremely High for Countries