Which of the following is not an effect of hyperinflation?
A)Price differences among sellers of the same product become larger.
B)People hold on to currency for long periods of time.
C)People tend to exchange the currency that is subject to high inflation for a more stable currency.
D)Resources are wasted by constant attention to inflation's effects.
E)Inflation-induced activity that is rational for individuals often has a detrimental effect on the economy as a whole.

Question

Quizplus · Accepted Answer

In hyperinflation, people do not hold on to currency for long periods of time because it rapidly loses value. Instead, they tend to spend it quickly or exchange it for more stable currencies.

Which of the Following Is Not an Effect of Hyperinflation