Which of the Following Best Describes Hyperinflation

A We need to carefully protect our borders. An economic bubble is a situation in which asset prices are much higher than the underlying fundamentals can reasonably justify.

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D Foreign aid should be reduced to help our budget deficit.

. B Hyperinflation is the most damaging thing that can occur in an economy. They are sometimes referred to as speculative bubbles. Bubbles are sometimes caused by unlikely and overly optimistic projections about the future.

They could also be described as prices which strongly exceed the assets intrinsic value. Which of the following is a positive statement. C When tax revenues are less than government spending there is a budget deficit.

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