1) A fall in the level of prices

A) does not affect the value of money.

B) has an uncertain effect on the value of money.

C) increases the value of money.

D) reduces the value of money.

2) A hyperinflation is

A) a period of extreme inflation generally greater than 50% per month.

B) a period of anxiety caused by rising prices.

C) an increase in output caused by higher prices.

D) impossible today because of tighter regulations.

3) During hyperinflations,

A) the value of money rises rapidly.

B) money no longer functions as a good store of value and people may resort to barter transactions on a much larger scale.

C) middle class savers benefit as prices rise.

D) money”s value remains fixed to the price level; that is, if prices double so does the value of money.