4
QuizMultiple Choice

Inflation and Stagflation

Question 4 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Hyperinflation can occur when

Answer
A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
companies raise prices to pass on costs to consumers.
D
the government prints a ton of money in order to pay off its debt.

Explanation

Hyperinflation is an extremely rapid rise in prices, often caused when a government creates far more money than the economy can support. Printing a large amount of money to pay off debt increases the money supply and can make each unit of money worth much less. That is why the choice about the government printing a ton of money is correct.

AI-written and checked against the verified answer.

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