In 2014, Venezuela experienced inflation of about 69%. In 2015, the inflation rate rose to around 181%, and by 2017, the inflation rate was over 4,000%. This scenario describes:
A)hyperinflation.
B)economic growth.
C)deflation.
D)money illusion.

Question

Quizplus · Accepted Answer

The rapid increase in inflation rates over the years (69%, 181%, and over 4,000%) indicates hyperinflation, which is a situation where prices rise rapidly and uncontrollably, leading to a rapid decrease in the purchasing power of money.

In 2014, Venezuela Experienced Inflation of About 69