Hyperinflation occurs because of:
A) excessive consumption.
B) excessive growth in the money supply.
C) excessive interest rates.
D) excessive investment.

Question

Quizplus · Accepted Answer

Hyperinflation occurs when there is an excessive growth in the money supply, leading to a decrease in the purchasing power of the currency. This may occur due to government printing more money to finance its expenditures, leading to an increase in the overall supply of money.

Hyperinflation Occurs Because Of