Which of the Following Causes 'Hyperinflation

question 15

Multiple Choice

Which of the following causes 'hyperinflation'?

• A)A shortage of credit, similar to that which occurred during the 2007-2009 global financial crisis.
• B)A central bank policy of high interest rates.
• C)Government budget surpluses leading to an increase in government spending.
• D)Central bank activity which increases financial liquidity at a much greater rate than the growth rate of real GDP.

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Definitions:

Managers

Individuals responsible for planning, organizing, leading, and controlling resources to achieve organizational goals.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Profit Centers

Divisions or departments within a business that are treated as separate entities for the purpose of financial reporting, with their own revenues and expenses.

Sales

Transactions between a seller and a buyer where goods or services are exchanged for money.