Venezuela, one of the world’s major oil producers, has faced hyperinflation of more than $400\%$ per annum in recent years. In what ways does hyperinflation affect 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