Which of the Following Is True About Hyperinflation

question 137

Multiple Choice

Which of the following is true about hyperinflation?

• A) Financial assets in a hyperinflated currency quickly become worthless.
• B) There have been no cases of hyperinflation in the world in the last two decades.
• C) Hyperinflation occurs when the inflation rate exceeds 1,000% per year.
• D) Hyperinflation can be stopped by printing larger denominations of paper currency.

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Definitions:

Consumer Surplus

The distinction between the total sum consumers are ready and financially equipped to pay for a product or service, and the sum they actually end up paying.

Consumer Surplus

The variegation between the preferred payment amount by consumers for a good or service and their final payment amount.

Producer Surplus

The discrepancy between the price at which producers are prepared to sell a product and the actual price they obtain.

Consumer Surplus

A mismatch between the price consumers feel prepared to pay for a good or service, and the actual outlay.