The main reason that hyperinflation renders a currency worthless ...

[scienceeasy]

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

Question 2

The LM curve slopes upward because
 
  a. as income rises, savings rise, increasing output.
  b. as interest rates rise, the money supply rises, increasing output.
  c. as interest rates rise, planned investment must fall, increasing output.
  d. as income increases, money demand rises, which increases interest rates.
  e. none of the above.

[phuda]

Answer to Question 1

E

Answer to Question 2

D

[scienceeasy]

YES! Correct, THANKS for helping me on my review

[ryhom]

Thanks for the timely response, appreciate it