News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion Zimbabwean dollars, an amount that would have bought 60 new cars less than ten years ago in the same country. It can be surmised that Zimbabwe is experiencing extremely high levels of _____, which has spiraled out of control in the past ten years.

Question

Quizplus · Accepted Answer

The correct answer is inflation, as the scenario described indicates a significant decrease in the value of the Zimbabwean dollar, requiring much larger amounts of money to purchase the same goods, a hallmark of inflation.

News Reports from Zimbabwe Indicate That a Small Pack of Locally