The highest annual inflation rate experienced in the United States during the past 50 years has been around
A) 3 percent
B) 9 percent
C) 14 percent
D) 27 percent
E) 1,000 percent

Question

Quizplus · Accepted Answer

The highest annual inflation rate experienced in the United States during the past 50 years was around 14 percent, which occurred in the late 1970s and early 1980s due to a combination of factors such as oil price shocks, expansionary monetary policy, and wage-price spiral. Option A (3 percent) and option B (9 percent) are too low, while option D (27 percent) and option E (1,000 percent) are too high.

The Highest Annual Inflation Rate Experienced in the United States