One problem with hyperinflation is that it reduces economic growth, both through resource misallocation and by reducing
Question:
a. Why does hyperinflation cause misallocation of resources?
b. Why does hyperinflation reduce saving and investment?
c. What effects do the misallocation of resources and reduced saving and investment have on economic growth?
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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