Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 17 - Money Growth and Inflation - Problems and Applications - Page 368: 4

Answer

Inflation is similar to a tax when every person who save the money losses purchasing power when inflation occurs.

Work Step by Step

Hyperinflation can be explained by the example of government printing more money to raise its revenue. By doing this they will inject inflation into the market as the money supply increases in the market.
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