Monetary Growth and Inflation
AP Macroeconomics · Flashcards · Application
AP MACROECONOMICS · FLASHCARDS
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QUESTION
What effect does an increase in
M
M
M
have on inflation if
V
V
V
and
Y
Y
Y
are constant?
QUESTION
Identify the impact of unexpected inflation on lenders.
QUESTION
What is the outcome of hyperinflation on currency value?
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ANSWER
Hyperinflation drastically reduces currency value. Money becomes nearly worthless as a store of value.
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