Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's:
A) desire to increase prices throughout the economy.
B) need to generate revenue to pay for spending.
C) responsibility to increase nominal interest rates by increasing expected inflation.
D) inability to conduct open-market operations.

Question

Quizplus · Accepted Answer

Governments may increase the growth rate of the money supply to generate additional revenue to pay for spending, leading to hyperinflation.

Hyperinflations Ultimately Are the Result of Excessive Growth Rates of the Money