Question

A country experiencing a hyperinflation is likely to:_________ a) have a low nominal interest rate. b) have another hyperinflation after the current problem is solved. c) have a government surplus d) have a low inflation tax

Answer 1

Answer:

b) have another hyperinflation after the current problem is solved.

Explanation:

Inflation can be defined as the persistent rise in the price of goods and services in an economy. When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

Generally, economists posit that a country experiencing a hyperinflation is likely to have another hyperinflation after the current problem is solved.