19
QuizMultiple Choice

N/A — Exam

Question 19 • Personal Finance and 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. An exponential increase means prices rise faster and faster, so the best definition is “an exponential increase in the price of goods and services.” A gradual increase is inflation, but it does not describe hyperinflation.

AI-written and checked against the verified answer.

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