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 only for very short periods of time.
C) People tend to exchange a currency that is subject to low inflation for one subject to high inflation.
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.
Correct Answer:
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Q112: Exhibit 7-1 Q113: Deflation refers to Q114: Exhibit 7-1 Q115: Which of the following is not an Q116: As a result of the hyperflation in Q118: If the inflation rate is higher than Q119: The view that union wage demands may Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)decreasing relative prices
B)a decreasing price