In Order to Stop Hyperinflation a Government Can

question 17

Multiple Choice

In order to stop hyperinflation a government can

• A)introduce new money and ensure that the money growth remains stable
• B)peg the exchange rate of the new money that is introduced to that of a stable foreign currency
• C)allow the use of another country's currency as a medium of exchange
• D)all of the above
• E)none of the above

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Definitions:

Preferred Stock Dividends

Dividends paid on preferred shares of a company which typically have a fixed dividend rate and priority over common stock in dividend payments.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.