Praxis II Social Sciences Content Knowledge Exam Prep

Answer - B - Hyperinflation is the name for the situation in which prices go up very rapidly within a single year and money becomes a very poor store of value.

Key Takeaway: Hyperinflation is simply inflation that is considered to be very high or out of control. During this time, the general price level within an economy increase extremely rapidly and domestic currency quickly loses its value. Typically, the term hyperinflation is used to describe cumulative inflation of roughly 100% over the course of three years, but during hyperinflation, the general price level could rise by 5-10% each day.