Question
Which one of the following causes the condition in which prices increase rapidly as a currency loses its value ?
Answer: Option D
Answer: (d)
Hyperinflation occurs when a country experiences very high and usually accelerating rates of monetary and price inflation, causing the population to minimize their holdings of money.
Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
Stagflation: Persistent high inflation combined with high unemployment.
Conflation: The merging of two or more sets of information texts, ideas etc into one.
Stealth inflation: It is a type of charge or fee created by the business to gain extra profit and revenue from its customers.
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Answer: (d)
Hyperinflation occurs when a country experiences very high and usually accelerating rates of monetary and price inflation, causing the population to minimize their holdings of money.
Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
Stagflation: Persistent high inflation combined with high unemployment.
Conflation: The merging of two or more sets of information texts, ideas etc into one.
Stealth inflation: It is a type of charge or fee created by the business to gain extra profit and revenue from its customers.
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