Question

Hyperinflation causes which economic effect in a country?

A. The country's currency becomes nearly worthless
B. The country's government refuses to invest in jobs programs
C. The country's stock market rises and falls unpredictably
D. The country's economy grows at an unprecedented rate

Answer 1

Hyperinflation is essentially a very high and typically accelerating inflation. It causes the erosion in the value of local currencies. It also causes the price of goods to increase.

Answer 2

The answer is A.

Hyperinflation causes that the Country's currency becomes nearly worthless.

Hyperinflation is a very high inflation that gets out of control, goods and services prices have significant increases provoking a devaluation making the people lose their purchase power. A major cause is the increment in quantity of money circulating that is not supported by the country production or goods.