What happens to the value of money when hyperinflation exists?
A) Money loses value very rapidly.
B) Foreign currency is valued against the U.S. dollar.
C) The value of all currency increases faster than gross national income.
D) There are more goods to purchase and it costs less to buy them.
E) All currency continues to be valued at the same amount across trade channels.

Question

Quizplus · Accepted Answer

During hyperinflation, the value of money decreases rapidly as prices for goods and services rise uncontrollably, eroding purchasing power.

What Happens to the Value of Money When Hyperinflation Exists