Which of the following is not a consequence of hyperinflation?
A)Money's function as a medium of exchange is enhanced.
B)Money loses value so rapidly that firms and individuals stop holding it.
C)It causes an economy to suffer slow growth.
D)The price level grows in excess of hundreds of percentage points per year.

Question

Quizplus · Accepted Answer

Hyperinflation does not enhance money's function as a medium of exchange. Instead, it undermines money's function as a medium of exchange by reducing confidence in its value and making it harder to use for transactions.

Which of the Following Is Not a Consequence of Hyperinflation