During Hyperinflation, Exploding Inflation Causes Real Money Demand to

question 53

Multiple Choice

During hyperinflation, exploding inflation causes real money demand to

• A) fall over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
• B) increase over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
• C) fall over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
• D) increase over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
• E) fall over time, and this additional monetary change makes money prices decrease even less quickly than the money supply itself rises.

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Definitions:

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