Which of the following is not an effect of hyperinflation?
A)Price differences among sellers of the same product become smaller.
B)People hold on to currency only for very short periods of time.
C)People tend to exchange the currency that is subject to high inflation for a more stable currency.
D)Resources are wasted by constant attention to inflation's effects.
E)Inflation-induced activity that is rational for individuals often has detrimental effects on the economy as a whole.

Question

Quizplus · Accepted Answer

Hyperinflation typically leads to price increases and a decrease in the value of currency, which can cause price differences among sellers of the same product to become larger rather than smaller.

Which of the Following Is Not an Effect of Hyperinflation