During periods of hyperinflation, which of the following would be a contractionary measure taken? A. controlling inflation rates B. ignoring the unemployment rate C. controlling all taxation D. controlling production and distribution

C. controlling all taxation

Explanation:

Hyperinflation is an economic situation where prices increase at a very high rate. In periods of hyperinflation, the rate of price increases is usually out of control.

Contractionary measures are actions that slow down the money supply in the economy. These measures reduce liquidity, thereby decreasing the amount of money available to businesses and individuals to spend.  Contractionary measures can be fiscal or monetary policy measures.

Congress undertakes contractionary fiscal measures, which include increases taxation and reducing government spending. Controlling all taxation would fall under contractionary fiscal measures. It involves adjusting taxation to achieve macroeconomic objectives.

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