Which of the Following Is Not an Effect of Hyperinflation

question 20

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 the currency that is subject to high inflation for a more stable currency.
• D)More resources are used efficiently to overcome inflation's effects on transactions costs.
• E)Inflation-induced activity that is rational for individuals often has a detrimental effect on the economy as a whole.