Hyperinflation Is Caused by

question 251

Multiple Choice

Hyperinflation is caused by

• A)a constant increase in the money supply.
• B)a high rate of growth in the money supply.
• C)Real GDP growing more rapidly than the money supply.
• D)the money supply growing more slowly than GDP.

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Definitions:

Note Payable

A written promissory note in which one party agrees to pay another party a definite sum of money either on demand or at a specified future date.

Capital Account

This account records the investments made by owners or shareholders into a company, along with retained earnings and accumulated other comprehensive income.

Capital Balances

The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, representing the actual earnings retained.