Question

Irkholm, a South American nation, experiences an economic downturn that leads to an increase in average prices across the country. The situation becomes more serious when average prices increase more than 50% per month. In the given scenario, Irkholm is experiencing _____.a. disinflation
b. hyperinflation
c. asset price inflation
d. deflation

Answer 1

Answer:

b. hyperinflation

Explanation:

Hyperinflation is when general price levels increase by at least 50% over a given period.

Asset price inflation is when asset prices rises.

Deflation is a fall in general price level. It is when inflation is negative.

Disinflation is a decrease in the rate of growth of inflation. It is when inflation is falling but is still postive.

I hope my answer helps you.