18
QuizMultiple Choice

Inflation and Stagflation — Quiz

Question 18 • Economics

When government intervention makes currency worthless, this condition is called

Answer
A
deflation.
B
hyperinflation.
C
demand-pull inflation.
D
cost-push inflation.

Explanation

Hyperinflation is an extremely rapid and severe rise in prices that can make a currency nearly worthless. Deflation is a general fall in prices, while demand-pull and cost-push inflation describe causes of rising prices rather than this extreme condition.

AI-written and checked against the verified answer.

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