Which is the best definition of hyperinflation? a gradual decrease in the price of goods and services

a gradual increase in the price of goods and services

an exponential decrease in the price of goods and services

an exponential increase in the price of goods and services

The correct answer is: "an exponential increase in the price of goods and services".

Inflation is defined as the gradual increase in the price level of goods and services in a region or country during a specific period of time. Hyperinflaction is the very accelerated version of the same phenomenon, when the increase in prices is spectacular and keeps growing without control. It generates a very quick devaluation of the currency, as its purchasing power decreases at the same rapid pace as the price rise.