Which among the following is the primary cause of hyperinflation?
A)decreased government purchases
B)excessive money growth
C)high interest rates
D)high levels of taxation

Question

Which among the following is the primary cause of hyperinflation?
A)​decreased government purchases
B)​excessive money growth
C)​high interest rates
D)​high levels of taxation

Quizplus · Accepted Answer

Hyperinflation is primarily caused by excessive money growth in the economy, which leads to a decrease in the value of the currency. This is often caused by the government printing too much money to finance its expenses or a significant increase in bank lending. Decreased government purchases, high interest rates, and high levels of taxation may contribute to inflation but are not the primary cause of hyperinflation.

Which Among the Following Is the Primary Cause of Hyperinflation