Hyperinflation refers to a situation in which
A)prices are rising extremely rapidly
B)prices are falling extremely rapidly
C)the price level is extremely high
D)the price level is extremely low
E)the price level is negative

Question

Quizplus · Accepted Answer

Hyperinflation is a rapid and out-of-control increase in prices, often reaching extreme levels within a short period of time. In hyperinflation, the currency loses its value and people struggle to purchase even basic necessities with their money. Therefore, A is the correct choice.

Hyperinflation Refers to a Situation in Which