The term ‘hyper-inflation’ means ________________

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Step-by-step explanation

1. Definition: Hyperinflation is an extremely rapid, runaway increase in the general price level such that the domestic currency loses most of its purchasing power and effectively becomes almost worthless.

2. Formal characterization: If $P_t$ denotes the price level at time $t$, the inflation rate is given by $\pi_t=\dfrac{P_t-P_{t-1}}{P_{t-1}}$. In hyperinflation $\pi_t$ is very large and typically accelerating (empirical definitions often cite monthly rates above 50%), so prices spiral upward uncontrollably.

3. Economic consequence: With such explosive price rises, money fails as a reliable store of value or medium of exchange, i.e., the monetary unit becomes nearly worthless — the hallmark of a ‘runaway’ or ‘galloping’ inflationary episode.

FINAL_ANSWER: c

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