In virtually all hyperinflations,rapid money growth begins to occur because of
A)a war.
B)a change of government.
C)union demands for higher wages.
D)large and / or growing budget deficits.
E) the introduction of wage indexation in labor contracts.

Question

Quizplus · Accepted Answer

In virtually all hyperinflations, rapid money growth begins to occur because of large and/or growing budget deficits. Governments increase the money supply to meet large budget deficits, leading to hyperinflation.

In Virtually All Hyperinflations,rapid Money Growth Begins to Occur Because