Economics · Oct / Nov 2019 · Paper 12 · Question 23

Venezuela, a leading world oil producer, has experienced hyperinflation of over 400% per annum in recent years. How does hyperinflation affect an economy?

1. Afluctuate up and down — consumers are uncertain about future price levels
2. Bfluctuate up and down — consumers can anticipate future price levels
3. Crise very rapidly — value of fixed assets remains stable
4. Drise very rapidly — money has limited worth as a medium of exchange

As printed in the paper