Hyperinflations Occur Because Governments Want to Spend More Than They

question 205

True/False

Hyperinflations occur because governments want to spend more than they raise in taxes,and they pay for the extra purchases by printing money.

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Definitions:

Operating Activities

Daily activities of a business related to producing and delivering its products and services, which generate the majority of a company's cash flow.

Investing Activities

Part of the cash flow statement that shows the inflow and outflow of cash from activities related to investments like securities, equipment, or properties.

Stock Dividend

A distribution of additional shares of stock by a corporation to its stockholders.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments.