Hyperinflations Ultimately Are the Result of Excessive Growth Rates of the Money

question 18

Multiple Choice

Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's:

• A) desire to increase prices throughout the economy.
• B) need to generate revenue to pay for spending.
• C) responsibility to increase nominal interest rates by increasing expected inflation.
• D) inability to conduct open-market operations.

---

Definitions:

Chronological Age

The actual age of a person measured in years from the date of birth.

Cell Divisions

The process by which a parent cell divides into two or more daughter cells, essential for growth, reproduction, and repair in living organisms.

Chromosomes

Threadlike structures made of DNA and protein that contain the genes, found in the nucleus of most living cells.

Longevity

The length of time that an individual lives or a thing lasts.