2
QuizMultiple Choice

Trade Agreements — Cumulative exam

Question 2 • * HSA 26-27 Economics

Which is the best definition of hyperinflation?

Answer
A
a gradual decrease in the price of goods and services
B
a gradual increase in the price of goods and services
C
an exponential decrease in the price of goods and services
D
an exponential increase in the price of goods and services

Explanation

Hyperinflation is an extremely rapid, accelerating rise in the general price level. Among these choices, an exponential increase in the price of goods and services best describes that pattern. A gradual increase is inflation, but not hyperinflation.

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