Hyperinflations Ultimately Are the Result of Excessive Growth Rates of the Money

question 21

Multiple Choice

Hyperinflations ultimately are the result of excessive growth rates of the money supply, the underlying motive for the excessive money growth rates is frequently a government's:

• A)desire to increase prices throughout the economy.
• B)need to generate tax revenue to pay for spending.
• C)responsibility to increase nominal interest rates by increasing expected inflation.
• D)inability to conduct open-market operations.

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Definitions:

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to a belief that one's actions have no effect on the outcome.

Obedience

A form of social influence where an individual follows the orders or directions from an authority figure.

Disobey Orders

The act of choosing not to follow directives given by those in authority, often due to ethical, moral, or personal reasons.

Feeling Sad

An emotional state characterized by feelings of disappointment, loss, or despair.