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