Venezuela, which is one of the world’s major oil producers, has in recent years suffered hyperinflation of over 400% per annum. How does hyperinflation influence an economy?
- Aprices fluctuate up and down; consumers are uncertain about future price levels
- Bprices fluctuate up and down; consumers can anticipate future price levels
- Cprices rise very rapidly; value of fixed assets remains stable
- Dprices rise very rapidly; money has limited worth as a medium of exchange