Inflation that wipes out the value of money quickly and thoroughly is called
A) runaway inflation.
B) deflation.
C) push-pull inflation.
D) stagflation.
E) reflation.

Question

Quizplus · Accepted Answer

Runaway inflation refers to a situation where the rate of inflation is rapidly increasing and leads to a significant decrease in the purchasing power of money. This type of inflation is typically caused by an increase in the money supply, often in response to government spending or monetary policy actions. When inflation becomes runaway, it can have severe economic and social consequences, such as hyperinflation and economic instability.

Inflation That Wipes Out the Value of Money Quickly and Thoroughly