Reference no: EM133707364

Question: Of the possible effects of hyperinflation, the following is not one of the main direct causes of a severe decline in total output: multiple choice everyone spends more of the local currency, as it depreciates in value, for the same goods or services. everyone spends less time working at their job to produce output and more time speculating about which goods might go up fastest in price, or transferring goods already in existence. everyone decides to convert their savings into nonproductive wealth such as jewelry rather than invest in capital equipment to produce more goods. everyone wants to be paid in barter and they stop accepting domestic money for payment, as a result money ceases to work as a medium of exchange in order to purchase newly produced goods.