When prices rise at an extraordinarily fast rate, it is called
A) Disinflation.
B) Deflation.
C) Hyperinflation.
D) Inflation.
E) Hypo inflation.

Question

Quizplus · Accepted Answer

Hyperinflation occurs when prices rise at an exceptionally fast rate, causing economic instability and a loss of confidence in the currency. Disinflation refers to a decrease in the rate of inflation, while deflation refers to a general decrease in prices. Inflation, on the other hand, is a general increase in prices over time. Hypo inflation is not a commonly used term in economics.

When Prices Rise at an Extraordinarily Fast Rate, It Is