Because of the decrease in the value of money, there comes exaggerated increase in incomes and prices. How is termed this system ?
Correct answer: A. Hyperinflation
- A. Hyperinflation
- B. Ultra-inflation
- C. A cute inflation
- D. Super inflation
Explanation
Hyperinflation is an extremely rapid and uncontrolled rise in prices that sharply destroys the value of money. The other labels are not standard economic terms for this phenomenon.
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About Macroeconomics
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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