Suppose you are in a meeting with the CFO, treasurer, and treasury staff at corporate headquarters. The discussion suddenly focuses on expanding operations in Latin America, in general, and in Brazil, in particular. A colleague at the table mentions that Brazil is probably not a good prospect for investment because she fears that the nation may return to the 7,000% inflation rate it once experienced. When asked for the cause of the hyperinflation, your colleague says that most of her fears are centered on the potential for the Brazilian government to pursue highly expansionary fiscal policies. All eyes turn toward you for a comment on the validity of your colleague's statement. The question boils down to this: Can expansionary fiscal policy without an accommodating increase in money supply cause extended periods of hyperinflation? Using QTM (i.e., monetarism) as the basis for your reply, explain whether a 7,000% inflation rate is possible under these conditions. If it is possible, what would have to occur to make it happen? Otherwise, explain why it is impossible or improbable.