Hyperinflation can be defined as an inflation rate of
A)50% or more per month.
B)50% or more per year.
C)50% or more decade.
D)All of the above are appropriately defined as hyperinflation.

Question

Quizplus · Accepted Answer

Hyperinflation is typically defined as an inflation rate of 50% or more per month. This extreme level of inflation can cause prices to skyrocket, leading to economic instability and social unrest. In contrast, an inflation rate of 50% or more per year (option B) would still be considered high inflation, but not necessarily hyperinflation. An inflation rate of 50% or more per decade (option C) would be considered very low inflation, as it would only amount to an average annual inflation rate of 3.5%, which is below the long-term historical average for many developed countries. Therefore, option A is the best choice for defining hyperinflation.

Hyperinflation Can Be Defined as an Inflation Rate of