When does inflation become hyperinflation?

a. When the inflation rate increases unpredictably.

b. When the inflation rate hits 100%

c. When the inflation rate continues to increase over a long period of time.

d. When the inflation rate hits 20%

Question

Ashton Gillespie

Business

13 June, 01:02

When does inflation become hyperinflation?

a. When the inflation rate increases unpredictably.

b. When the inflation rate hits 100%

c. When the inflation rate continues to increase over a long period of time.

d. When the inflation rate hits 20%

+1

Answers (1)

Know the Answer?

Kian Lindsey · Answer 1

The correct answer is letter "B": When the inflation rate hits 100%.

Explanation:

Hyperinflation is an economic term describing rapid uncontrolled price increases. During periods of hyperinflation, the real value of domestic currency vanishes at a rapid rate. Hyperinflation takes place when inflation has reached or is more than 50% during one month or when inflation reaches or exceeds 100% over three years.

When does inflation become hyperinflation?a. When the inflation rate increases unpredictably.b. When the inflation rate hits 100%c. When the inflation rate continues to increase over a long period of time.d. When the inflation rate hits 20%

When does inflation become hyperinflation?

a. When the inflation rate increases unpredictably.

b. When the inflation rate hits 100%

c. When the inflation rate continues to increase over a long period of time.

d. When the inflation rate hits 20%