Macroeconomics 5th Edition by Olivier Blanchard

Exercise 1

Using the information in this chapter; label each of the following statements true, false, or uncertain. Explain briefly
a. In the short run, governments can finance a deficit of any size through money growth.
b. The inflation tax is always equal to seignorage.
c. Hyperinflations may distort prices, but they have no effect on real output.
d. The solution to ending z hyperinflation is to institute a wage and price freeze.
e. Because inflation is generally good for those who borrow money, hyperinflation are the best times to take out large loans.
f. Budget deficits usually shrink during hyperinflation.