Hyperinflationary episodes are always related to extremely rapid growth of: A.re

Question

Hyperinflationary episodes are always related to extremely rapid growth of: A.real GDP. B. money supply. C.interest rates. D.money demand. Which of the following financial organizations have the ability to influence the supply of reserves in the United States? A.The World Bank B.The Fed C.Only private commercial banks D. Only public sector banks A retired worker receives a pension that is not indexed to inflation. Which of the following will happen if the rate of inflation rises? A.The retiree will be better off. B.The retiree's purchasing power will fall. C.The shareholders of the firm in which he worked will lose. D.The retiree's purchasing power will increase Assuming all else equal, what is likely to happen to the demand curve for reserves in an economy if it goes through a period of rapid expansion? A.There will be a n upward movement along the demand curve for reserves. B.The demand curve for reserves will shift to the left. C.There will be a downward movement along the demand curve for reserves. D.The demand curve for reserves will shift to the right. If the nominal interest rate in an economy is 9% and the expected inflation rate is 6%, then the expected real interest rate in the economy is: A.15%. B.9%. C.6%. D.3%.

Explanation / Answer

Hyperinflation is caused by the rapid growth of money supply.

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