Which of the Following Would Most Likely Be Called a Hyperinflation

question 45

Multiple Choice

Which of the following would most likely be called a hyperinflation?

• A) Price increases averaged 300 percent per year.
• B) The inflation rate was 10 percent per year.
• C) Real GDP grew at a rate of 12 percent over a year.
• D) A stock market index rose by 1,000 points over a year.

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Definitions:

Government Purchases

Expenditures by government entities on goods and services that contribute to a country's gross domestic product (GDP).

Nominal Interest Rate

The interest rate before adjusting for inflation, representing the surface rate at which interest is paid by a borrower for the use of money.

Exchange Rate

The price measured in one country’s currency of purchasing one unit of another country’s currency

Employment

The condition of having paid work or the number of people within an economy who are currently employed.