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Which of the Following Is Not an Effect of Hyperinflation

Question 117

Multiple Choice

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.

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