Based on past experience,if a country is experiencing hyperinflation,then which of the following would be a reasonable guess?
A)The country has high money supply growth.
B)Inflation is acting like a tax on everyone who holds money.
C)The government is printing money to finance its expenditures.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In past experiences of hyperinflation, all three factors have been present. High money supply growth has contributed to the inflation, and inflation acts like a tax on those who hold money as the value of their savings decreases. The government may print money to finance its expenditures, which further contributes to the inflation. Therefore, all of the above options are correct.

Based on Past Experience,if a Country Is Experiencing Hyperinflation,then Which