Asked by Olivia Wilma on Jun 28, 2024
Verified
Extremely high rates of inflation such as that experienced by Nicaragua in the 1980s are described as
A) deflation.
B) hyperinflation.
C) disinflation.
D) inflation.
E) stagflation.
Hyperinflation
An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's real value.
- Gain an understanding of the fundamental concepts and triggers of inflation and deflation.
Verified Answer
CE
Carlos EduardoJul 03, 2024
Final Answer :
B
Explanation :
Extremely high rates of inflation are described as hyperinflation. This is characterized by a rapid and uncontrollable increase in prices, often exceeding 50% per month. Nicaragua experienced hyperinflation during the 1980s.
Learning Objectives
- Gain an understanding of the fundamental concepts and triggers of inflation and deflation.