Hyperinflation Is Caused by

question 128

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.
• E)large government surpluses.

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Definitions:

Direct Materials Inventory

Raw materials that are directly used in the production process and can be easily traced to the finished product.

Finished Goods Inventory

The stock of completed products that are ready to be sold but are still in inventory.

Cost of Goods Sold

Expenses directly related to manufacturing goods that a firm sells.

Finished Goods

Merchandise that has been through the manufacturing phase and is now ready for customer purchase.