_____ is an economic situation characterized by soaring prices.

Question

Quizplus · Accepted Answer

Hyperinflation is an economic situation where the rate of inflation is very high, leading to a continuously increasing price level of goods and services. In this situation, the currency of the country loses its value rapidly, and people lose confidence in it, leading to economic instability. Deflation is the opposite of hyperinflation and happens when there is a continuous decrease in the general price level of goods and services. A budget surplus and a balanced budget refer to situations where the government's revenues exceed its expenditures or where government expenditures equal its revenues, respectively, and do not relate to rising or falling prices. Therefore, the best choice is A) Hyperinflation.

_____ Is an Economic Situation Characterized by Soaring Prices