Hyperinflation Is Usually Caused by the Government Running Extremely High

question 234

True/False

Hyperinflation is usually caused by the government running extremely high deficits and then increasing the money supply to finance such deficits.

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Definitions:

Probability-Weighted

An approach to forecast future outcomes which involves assigning probabilities to different possible events and calculating expected values.

Time Value

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. It is the value at which a company's shares are initially recorded in its books.

Undervalued

A financial assessment suggesting that a security or asset is trading below its intrinsic or fair value.