A hyperinflation occurs when
A) inflation persists for more than two years.
B) inflation persists for more than five years.
C) the inflation rate exceeds 10% per year.
D) the inflation rate exceeds 100% per year

Question

Quizplus · Accepted Answer

Hyperinflation is a situation where the inflation rate increases by more than 50% per month, or over 100% per year, leading to the devaluation of a currency and rapid increase in prices. Therefore, option D, where the inflation rate exceeds 100% per year, is the correct choice. Choices A, B, and C, are not specific enough to define hyperinflation.

A Hyperinflation Occurs When