In which of the following situations is an economy experiencing hyperinflation?
A) a decrease of more than 50% per day
B) an increase of more than 50% per month
C) an increase of more than 100% in a year
D) a decrease of more than 100% in a year

Question

Quizplus · Accepted Answer

Hyperinflation is defined as a rapid and excessive increase in the general price level of goods and services in an economy. Typically, hyperinflation occurs when there is a monthly inflation rate of 50% or more. Options A and D describe a decrease in prices, which is deflation, not hyperinflation. Option C describes a high inflation rate, but not necessarily hyperinflation.

In Which of the Following Situations Is an Economy Experiencing