A Consequence of Hyperinflation Is That People

question 216

Multiple Choice

A consequence of hyperinflation is that people

• A) who make fixed-payment loans to others receive higher payments as inflation increases.
• B) spend time trying to keep their money holdings near zero.
• C) receive higher real wage hikes, which increases their purchasing power for goods and services.
• D) want to lend funds because interest rates are so high.
• E) increase the quantity of money demanded.

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Definitions:

Counterproposal

An alternative proposal made in response to an original offer that does not meet one's satisfaction.

Legal Risks

Potential threats of legal action that could arise from engaging in certain behaviors or business practices.

Ethical Risks

Situations that pose a moral challenge or threat to a person's or organization's integrity and values.

External Stakeholders

External stakeholders are individuals or organizations outside of a company that have an interest or concern in the business's decisions and activities, such as customers, suppliers, investors, and the community.