7. Consequences of hyperinflation Which of the following are consequences of hyperinflation? Check all that apply People spend significant time and effort buying goods and services to avoid losing purchasing power. Investors make speculative rather than productive investments. People hold on to money as long as possible. People keep less of their money in the bank and more of it under their mattresses ( that is , in cash).
7. Consequences of hyperinflation Which of the following are consequences of hyperinflation? Check all that apply People spend significant time and effort buying goods and services to avoid losing purchasing power. Investors make speculative rather than productive investments. People hold on to money as long as possible. People keep less of their money in the bank and more of it under their mattresses ( that is , in cash).
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Money Growth And Inflation
Section: Chapter Questions
Problem 4CQQ
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7. Consequences of hyperinflation
Which of the following are consequences of hyperinflation? Check all that apply
People spend significant time and effort buying goods and services to avoid losing
Investors make speculative rather than productive investments.
People hold on to money as long as possible.
People keep less of their money in the bank and more of it under their mattresses ( that is , in cash).
Expert Solution
Step 1
1.People spend lot of time to purchase because money will loose value when hyperinflation comes.
2.Investors make speculative investments due to knowledge of occurence of hyperinflation.
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