Which of the Following Is Not an Effect of Hyperinflation

question 27

Multiple Choice

Which of the following is not an effect of hyperinflation?

• A)Price differences among sellers of the same product become smaller.
• B)People hold on to currency only for very short periods of time.
• C)People tend to exchange the currency that is subject to high inflation for a more stable currency.
• D)Resources are wasted by constant attention to inflation's effects.
• E)Inflation-induced activity that is rational for individuals often has detrimental effects on the economy as a whole.

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Definitions:

Law of Similars

A principle in homeopathy suggesting that substances causing symptoms in healthy people can treat similar symptoms in sick people.

Symptom

A physical or mental feature that is regarded as indicating a condition of disease, particularly such a feature noticed by the patient.

Substance

Material with particular physical characteristics or chemical composition.

Phantom Limb Pain

Pain that feels like it's coming from a body part that's no longer there, commonly experienced by amputees.