1. To finance a budget deficit, a government can either borrow from the public or create __________.
2. During hyperinflations the velocity of money tends to sharply__________.
3. Economists call inflation hyperinflation when the inflation rate exceeds __________percent per month.
4. Hyperinflations cannot occur unless the growth rate of__________ is very high.
5. Hyperinflation and Barter. Some economists and journalists noticed that during Zimbabwe’s hyperinflation, the economy was turning to a barter economy. Why do you think this would occur?
6. Losing Wars and Hyperinflation. Why do hyperinflations occur more frequently after countries lose wars than when they win them?
7. Unprofitable Government Enterprises and Inflation. In some developing countries, governments are forced to support large enterprises that persistently lose substantial sums of money. Why might this cause inflation?