What Is a Hyperinflation

question 34

Multiple Choice

What is a hyperinflation?

• A)It is an inflation rate in excess of 200 percent per year.
• B)It is a combination of excessive increase in the price level and rising unemployment.
• C)It refers to a situation where a country's money supply is no longer backed by gold.
• D)It is a situation in which financial markets collapse and the government is forced to print money.

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Definitions:

Steel

A hard, strong alloy of iron with carbon and often other elements, used widely as a structural and fabricating material.

Dumping

The practice of selling a product in a foreign market at a price lower than the production cost or domestic market price, often to gain market share or dispose of surplus.

Heckscher-Ohlin Theorem

An economic theory stating that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.