During 1993-1994, Democratic Republic of Congo has experienced an inflation rate of more than sixty-nine thousand percent per year.This economic condition would best be described as:
A)a wage-price inflationary spiral.
B)a cost-of-living adjustment.
C)cost-push inflation.
D)hyperinflation.

Question

Quizplus · Accepted Answer

An inflation rate of more than sixty-nine thousand percent per year is considered hyperinflation. This is a situation where prices rise at an extremely high rate, making the currency almost worthless. This is usually caused by a rapid increase in the money supply or a decrease in the overall production of goods and services.

During 1993-1994, Democratic Republic of Congo Has Experienced an Inflation