Which of the following statements is TRUE?
A)hyperinflation often occurs in the aftermath of a war
B) large budget deficits are typical for a country experiencing hyperinflation
C)a government can utilize the inflation tax to finance at least part of its deficit
D)the inflation tax revenue is equal to the inflation rate multiplied by the real money base
E)all of the above

Question

Quizplus · Accepted Answer

All of the statements are true. 
A) Hyperinflation often occurs in the aftermath of a war due to disruptions in the economy and the need for governments to finance expensive military operations.
B) Large budget deficits are typical for a country experiencing hyperinflation due to the government's need to spend more money than it can collect in taxes or through borrowing.
C) A government can use the inflation tax to finance part of its deficit by printing more money and causing inflation.
D) The inflation tax revenue is equal to the inflation rate multiplied by the real money base, which refers to the amount of currency in circulation that can be exchanged for goods and services.

Which of the Following Statements Is TRUE