In a Hyperinflation, the Economy

question 137

Multiple Choice

In a hyperinflation, the economy:

• A)always collapses.
• B)can continue to function but people are unwilling to hold any money.
• C)can continue to function because people build expected inflation into wages and prices.
• D)will slow on its own to lower inflation.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Dividends

A portion of a company's earnings distributed to shareholders as a reward for their investment.

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.

No-Par Common Stock

Shares of common stock issued without a par value, which means they are not assigned a nominal face value.