Which of the Following Is Characteristic of a Hyperinflation

question 4

Multiple Choice

Which of the following is characteristic of a hyperinflation?

• A) the government runs a large budget surplus by raising taxes
• B) households increase their savings
• C) government finances expenditures by printing money
• D) the real stock of money rises by more than 50% per month
• E) currency is issued according to a gold standard

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Definitions:

Common Size

A financial analysis technique that expresses each line item in a financial statement as a percentage of a base figure, aiding in comparison across different financial periods or companies.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Stakeholders

Individuals or groups who have an interest in the success or performance of a company, including employees, customers, investors, suppliers, and the community.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.