Hyperinflation isA) most likely to occur when the money supply is not allowed to increase rapidly enough.B) a dramatic decline in the overall price level.C) equivalent to depression.D) None of the choices are correct.

Question

Hanshul Jhanginia · Accepted Answer

Final Answer : D, Explanation :  Hyperinflation refers to an extremely rapid or out of control inflation, where the price level increases very quickly as a currency loses its value. None of the provided options accurately describe hyperinflation. Option A describes a situation that could lead to deflation or economic stagnation rather than hyperinflation. Option B describes deflation, which is the opposite of inflation. Option C equates hyperinflation with depression, which is incorrect as depression is characterized by a prolonged period of economic downturn, not specifically by rapid inflation.

Hyperinflation is

A) most likely to occur when the money supply is not allowed to increase rapidly enough.
B) a dramatic decline in the overall price level.
C) equivalent to depression.
D) None of the choices are correct.

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