Question

Hyperinflation causes which economic effect in a country?

Answer 1

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.

Answer 2

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.