Which of the Following Is Not a Consequence of Hyperinflation

question 84

Multiple Choice

Which of the following is not a consequence of hyperinflation?

• A)Money's function as a medium of exchange is enhanced.
• B)Money loses value so rapidly that firms and individuals stop holding it.
• C)It causes an economy to suffer slow growth.
• D)The price level grows in excess of hundreds of percentage points per year.

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Definitions:

Special Price

A discounted or promotional pricing strategy applied to a product or service for a limited time or specific customers.

Variable Costs

Costs that vary directly with the level of production or business activity, such as raw materials and labor.

Fixed Costs

Expenses that remain constant in total regardless of changes in the level of business activity or output.

Net Income

The total amount of profits earned by a company after all expenses and taxes have been deducted from revenue.