12
QuizMultiple Choice

4.4 Inflation and Stagflation

Question 12 • (OC27) Economics-2102310-Sem-Meadows

When government intervention makes currency worthless, this condition is called

Answer
A
deflation.
B
hyperinflation.
C
cost-push inflation.
D
demand-pull inflation.

Explanation

Hyperinflation is an extremely rapid rise in prices that severely reduces a currency’s purchasing power, potentially making it nearly worthless. Deflation is a general fall in prices, while cost-push and demand-pull inflation describe causes of rising prices.

AI-written and checked against the verified answer.

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