Inflation at a rate that exceeds 50 percent per month is called
A) extreme inflation.
B) super inflation.
C) hyperinflation.
D) megainflation.
E) skyflation.

Question

Quizplus · Accepted Answer

Inflation at a rate that exceeds 50 percent per month is called hyperinflation. This is characterized by rapidly rising prices and a decrease in the purchasing power of currency. Hyperinflation is often caused by a combination of factors such as excessive money printing, a decrease in the supply of goods, and a decrease in the confidence in the economy and government. Hyperinflation can be very damaging to an economy as it creates uncertainty, reduces investment, and can cause widespread poverty.

Inflation at a Rate That Exceeds 50 Percent Per Month