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.

---

Definitions:

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision-making processes, often used when facing complex problems or incomplete information.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Net Benefits

The total benefits of some activity or policy less the total costs of that activity or policy.

Neoclassical Models

Economic models that emphasize rationality, individual optimization, and equilibrium, focusing on how market mechanisms allocate resources efficiently.