Question

When does inflation become hyperinflation?

a. When the inflation rate increases unpredictably.
b. When the inflation rate hits 100%
c. When the inflation rate continues to increase over a long period of time.
d. When the inflation rate hits 20%

Answer 1

The correct answer is letter "B": When the inflation rate hits 100%.

Step-by-step explanation:

Hyperinflation is an economic term describing rapid uncontrolled price increases. During periods of hyperinflation, the real value of domestic currency vanishes at a rapid rate. Hyperinflation takes place when inflation has reached or is more than 50% during one month or when inflation reaches or exceeds 100% over three years.