One Reason Zimbabwe Suffered from Hyperinflation Is That the Government

question 167

Multiple Choice

One reason Zimbabwe suffered from hyperinflation is that the government had decided to pay for all of its expenses by

• A)selling Treasury bonds to foreign governments.
• B)selling its government-run oil company to a private company,which then defaulted on its payment.
• C)raising interest rates to attract foreign direct investment,then nationalizing the foreign-owned facilities.
• D)printing more and more money.

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Definitions:

Divisor

A number by which another number, typically the numerator of a fraction, is divided.

Bankruptcy

The legal status for individuals or entities that cannot repay debts owed to creditors, often involving asset liquidation.

Original Investment

The initial amount of money put into an investment or project, before any earnings, interest, or growth.

Common Shareholders

Individuals or entities that own common shares in a company, giving them rights to vote at shareholders' meetings and to receive dividends.