Which of the Following Contributed to the Emergence of Hyperinflation

question 2

Multiple Choice

Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?

• A)payment of massive war reparations required by the Versailles Peace Treaty
• B)huge budget deficits financed by printing paper money
• C)decreased desire to hold money on the part of the German people
• D)All of the above

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without depletion from use by others.

Rivalry

Competition between businesses or individuals for market share, resources, or achievements.

Excludability

Excludability is a property of a good or service that allows its owner to prevent others from using it without permission, which is important for classifying goods in economic terms.

Public Good

Services or commodities made available to every person in a society free of cost, courtesy of either the government or non-governmental organizations, devoid of profit objectives.