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What happens to the value of money when hyperinflation exists? Multiple Choice All currency continues to...

What happens to the value of money when hyperinflation exists?

Multiple Choice

  • All currency continues to be valued at the same amount across trade channels.

  • Money loses value very rapidly.

  • There are more goods to purchase and it costs less to buy them.

  • Foreign currency is valued against the U.S. dollar.

  • The value of all currency increases faster than gross national income.

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Answer #1

"B",

When there is a hyper inflation in the market then money loses its value very quickly and the goods cost very high, the answer is "B" only.

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