Which of the following does not contribute to the choice of a policy of hyperinflation?
A) war
B) increased price of energy paid to foreigners
C) price of export commodities increase
D) diminished ability to collect taxes

Question

Quizplus · Accepted Answer

A policy of hyperinflation is typically chosen in response to economic difficulties such as high levels of debt, unemployment, and reduced economic activity. A, B, and D all contribute to these difficulties, but an increase in the price of export commodities actually provides a boost to the economy and would not be a factor in choosing a policy of hyperinflation.

Which of the Following Does Not Contribute to the Choice