What is the outcome of very high inflation or hyperinflation?
A)The nation will have a balance of trade surplus.
B)The nation's exchange rate increases compared to other currencies.
C)Arbitrage of that nation's currency increases.
D)The currency of the nation becomes basically worthless.

Question

Quizplus · Accepted Answer

Hyperinflation leads to a rapid decrease in the value of money, causing the currency to become essentially worthless as prices of goods and services increase uncontrollably.

What Is the Outcome of Very High Inflation or Hyperinflation