Q. Which of the following inflation has increase of annual rates in million or even trillion?

[A] Inflation

[B] Low inflation

[C] Galloping inflation

[D] Hyper inflation

Answer: D

Explanation: The hyper inflation is ‘large and accelerating’ which might have the annual rates in million or even trillion.

  • In such inflation not only the range of increase is very large, but the increase takes place in a very short span of time, prices shoot up overnight.
  • The best example of hyperinflation that economists cite is of Germany after the First World War—in early 1920s. At the end of 1923, prices were 36 billion times higher than two years earlier.

Source: Ramesh Singh