The main reason that hyperinflation renders a currency worthless is that ________.
A) the government cannot print money fast enough to keep up with the rising prices
B) laws against raising prices are easily evaded
C) reducing government expenditures is politically unpopular
D) the government’s “official” inflation rate is always a gross understatement
E) as soon as inflation seems out of control, everyone knows that the currency will soon lose whatever value it has today
ANSWER
E
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