«o SHIVA D.U, B.COM, (HONS) nd (0 lose due.to inflation’ because nayy they rectly adversely affects savings, Q. 3, What is meant by hyperiaglation? ‘Amd. When associated with depressions; hyperinllaton often accuse: wei there s a large increase in the money supply Product (GDP) growth resulting n oh the money left unchecked. This eauses eee mtr er eo a ey ferent ung cry a comes li a eae rena ai money. ep ht 3, vein ig mony fe ake Panag ey. dene nf ge ae sae Gemending wage increases. * ‘become engraved on people's mind + Saute the economy to slow down and reduce living standards. Tey (iv) Réluctance/t aes oe hyperinflation in, 1920s it was un ee ore fare mploymen a eke do anything ngs eee spl tet the sary of people in =a scheme fai for 2 years they put 10% of tel wage no a pension hank Hei ened ihe pension ahem in 1923, gave tham enough mons of coffee had increased:diuring the time a recaps Wen pple got aida 10am i the mova they weld faves spend it straight away, ofhgrwise the wage would become worthless, There Is the story that to pay teachers, the money had tobe carried in a lorry. When the lory “came the distributed the wheelbarrows of money, the teachers gave lt to relative who woilld go off and Biiy goods straight aw: ag 3, Lack of confidence in the Findnce-Sector. The experience-of inflaton can them suspicious of financers, bankers and the general economic system. It is no coincidence the Nazi party were able to feed off these suspicious lo introduc extremist policies, 4. Lack of Investment and economic growth. URimately hyperinflation causes people to have lower spending and firms lose confidence in investing, This an gaa0