A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
Correct answer: B. Hyper-inflation
- A. Inflation
- B. Hyper-inflation
- C. Deflation
- D. Disinflation
Explanation
Hyperinflation is an exceptionally rapid and uncontrolled rise in prices that severely destroys money's purchasing power. In extreme cases, people may prefer barter or another currency.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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