When There Is a Hyperinflation,all of the Following Occur Except

question 29

Multiple Choice

When there is a hyperinflation,all of the following occur except

• A)people spend a lot of time and energy getting rid of currency as fast as possible.
• B)the government finds it difficult to collect taxes.
• C)markets become inefficient because prices are no longer reliable signals.
• D)people make fixed rate loans to protect themselves against inflation.

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Definitions:

Capitalism

An economic system characterized by private ownership of the means of production and their operation for profit.

Socialism

A political and economic system where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Total Surplus

An economic measure representing the total benefits to consumers and producers, achieved by the difference between the willingness to pay and the actual price paid, plus the cost savings to producers.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or across international borders.