Which of the Following Causes 'Hyperinflation

question 15

Multiple Choice

Which of the following causes 'hyperinflation'?

• A)A shortage of credit, similar to that which occurred during the 2007-2009 global financial crisis.
• B)A central bank policy of high interest rates.
• C)Government budget surpluses leading to an increase in government spending.
• D)Central bank activity which increases financial liquidity at a much greater rate than the growth rate of real GDP.

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period without exposure to the conditioned stimulus.

Stimulus Generalization

The process by which a conditioned response becomes associated with stimuli that are similar but not identical to the original conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Heredity

The transmission of physical or mental traits from one generation to the next through genetics.