Hyperinflation refers to a situation in which:
A) prices are rising extremely rapidly.
B) prices are falling extremely rapidly.
C) the price level is extremely high.
D) the price level is extremely low.

Question

Quizplus · Accepted Answer

Hyperinflation is specifically defined as a situation in which prices are rising extremely rapidly, often to the point of completely destabilizing the economy. While high prices on their own may not necessarily indicate hyperinflation, an extremely rapid rate of increase in prices is a defining characteristic.

Hyperinflation Refers to a Situation in Which