Economic Crashes Flashcards
1
Q
Hyperinflation
A
when a country experiences a monthly inflation rate of over 50%
2
Q
How is hyperinflation caused
A
when the government increases currency faster than output can rise
3
Q
Velocity of Money
A
the number of times a dollar is spent per year
4
Q
Liquidity trap
A
when people expect prices to fall in the future so they wait, in turn, causing the prices to fall even faster because no one is spending.
5
Q
stagflation
A
when output stagnates but money and prices increase
