When there is a hyperinflation,all of the following occur except
A)people spend a lot of time and energy getting rid of currency as fast as possible.
B)the government finds it difficult to collect taxes.
C)markets become inefficient because prices are no longer reliable signals.
D)people make fixed rate loans to protect themselves against inflation.

Question

Quizplus · Accepted Answer

During hyperinflation, people generally do not make fixed rate loans to protect themselves against inflation as fixed rate loans do not protect against the rapidly changing values of currency. Instead, people may seek out investments in assets such as gold or foreign currency to try to preserve their wealth.

When There Is a Hyperinflation,all of the Following Occur Except