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QUESTION IMAGE

when government intervention makes currency worthless, this condition i…

Question

when government intervention makes currency worthless, this condition is called
deflation.
hyperinflation.
cost - push inflation.
demand - pull inflation.

Explanation:

Brief Explanations
  • Deflation is a decrease in the general price level, so it's not when currency becomes worthless.
  • Hyperinflation is extremely high and typically accelerating inflation, which can make a currency nearly worthless due to rapid loss of value.
  • Cost - push inflation is caused by rising production costs (like wages or raw materials), leading to price increases, but not to the extent of making currency worthless.
  • Demand - pull inflation is due to excess demand relative to supply, causing price rises, not making currency worthless.

Answer:

B. hyperinflation.