Which of the Following Is Not an Effect of Hyperinflation

question 46

Multiple Choice

Which of the following is not an effect of hyperinflation?

• A)Price differences among sellers of the same product become larger.
• B)People hold on to currency only for very short periods of time.
• C)People tend to exchange a currency that is subject to low inflation for one subject to high inflation.
• D)Resources are wasted by constant attention to inflation's effects.
• E)Inflation-induced activity that is rational for individuals often has a detrimental effect on the economy as a whole.

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Definitions:

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Issued Shares

Shares of a company that have been allocated and are currently held by shareholders.

Common Stock

Shares representing ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Revenue Realized

Income that a company has earned and received payment for, typically from sales of goods or services.