Asked by jessica Musgrave on Jul 09, 2024
Verified
The source of all four classic hyperinflations was high rates of money growth.
Hyperinflations
An extremely high and typically accelerating inflation rate, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency and causing the population to minimize their holdings of the local money.
Money Growth
An increase in the amount of money in circulation or in the overall money supply within an economy.
- Comprehend the quantity theory of money and its consequences for economic health.
Verified Answer
SI
Shoubii I NarmadaJul 13, 2024
Final Answer :
True
Explanation :
The classic hyperinflations in Hungary, Germany, Zimbabwe, and Yugoslavia were primarily caused by extremely high rates of money growth, as governments printed money to cover their expenses, leading to a rapid decrease in the value of money and soaring prices.
Learning Objectives
- Comprehend the quantity theory of money and its consequences for economic health.