Hyperinflation Can Best Be Stopped If a Government

Multiple Choice

Hyperinflation can best be stopped if a government

A) reforms its budget process, introduces new money, and pegs the exchange rate of the new money to that of a stable foreign currency
B) imposes wage-price controls but lets money supply grow at high levels for a prolonged time to accommodate the high demand for money
C) is replaced by another government more friendly towards industrial nations so more foreign aid can be obtained
D) implements supply-side policies in an effort to simultaneously reduce the rates of inflation and unemployment
E) gradually reduces money supply growth so a large increase in unemployment can be avoided