HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What effect did hyperinflation have on prices?
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They went up
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They went down
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They stayed the same
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They went down slightly
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Explanation:
Detailed explanation-1: -When prices rise excessively, money decreases in value because inflation causes it to have less purchasing power. Less purchasing power means consumers spend more to buy less. As a result, they have less money to pay bills and fewer dollars to use on essential items.
Detailed explanation-2: -Hyperinflation is a condition where the price of everything in a national economy goes out of control and increases very quickly.
Detailed explanation-3: -Hyperinflation winners: Borrowers, such as businessmen, landowners and those with mortgages, found they were able to pay back their loans easily with worthless money. People on wages were relatively safe, because they renegotiated their wages every day.
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