All categories

2 years ago

When government intervention makes currency worthless, this condition is called

2 answers:

8 0

<u>Option (B) is correct. When government intervention makes currency worthless, this condition is called hyperinflation. </u>

Further Explanation:

Hyperinflation:

Hyperinflation is a condition in the economy when the price of the goods rises very quickly. The price of the product rises unusually, which would lead to a drastic change in a few days only. The condition of the hyperinflation occurs when the government of a country starts to print the money for the repayment of its loan and spending. As the supply of money increases, the value of the currency decreases. The currency’s purchasing power will decrease. It will result in the huge price rise of commodities. The inflation occurs due to two factors:

The increase in the money supply.
Demand-pull inflation.

In demand-pull inflation, the demand for the products exceeds the supply of the product. It will lead to an increase in the price of the goods. In order to straighten the money supply, the government prints more notes. With the huge amount of currency in the economy, the price of the product increases very fast.

Government intervention to make the currency worthless:

When the government makes the currency worthless, the condition is known as hyperinflation because the government tries to strengthen the money supply to beat inflation. However, it drastically increases the price of the product.

Thus, option (B) is correct. When government intervention makes currency worthless, this condition is called hyperinflation.

Learn More:

Learn more about the product leadership brainly.com/question/6610513
Learn more about the demand and supply brainly.com/question/5471118
Learn more about the demand brainly.com/question/11093180

Answer Details:

Grade: Senior school

Chapter: Inflation

Subject: Economics

Keywords: government, intervention,makes, currency, worthless, condition, deflation,

hyperinflation, cost-push inflation, demand-pull inflation.

DiKsa [7]2 years ago

5 0

In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, rapidly eroding the real value of the local currency, and causing the population to minimize their holdings of local money. Hyperinflation<span> is a situation where the price increases are so out of control that the concept of inflation is meaningless.</span>

You might be interested in

Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an

weqwewe [10]

Answer:

a. 50, which is high by historical standards.

Explanation:

a. 50, which is high by historical standards.

It is high because current price is high than earnings.

Earning yield is the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.

PRice Earning ratio = Market price per share/ Earning per share

Price Earning ration= $20/ 0.4 = 50

Earning per share= Earnings/ No of shares outstanding

EPS= $ 1 million/$ 2.5 million = 0.4

5 0

2 years ago

Samson's purchased a lot four years ago at a cost of $398,000. At that time, the firm spent $289,000 to build a small retail out

vladimir1956 [14]

Answer:

initial cash flow is 2,929,000

Explanation:

Attached is the table

3 0

2 years ago

A server should check with a manager before accepting which type of id

blagie [28]

The answer for this question is: Out of state ID
When accepting out-of-state study, the institution is required to ask for additional information such as recent photos and document issuance date.
Since this type of ID make everything become complicated, a lot of individual establishments choose not to accept this type of ID.

7 0

2 years ago

Brendan wanted to offer high-quality meals in his restaurant. His motto was "the best darn meat and potatoes for miles around."

sattari [20]

Answer:

that the winning competitive advantage is one that addresses quality and service.

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the best accurate advice to Brendan would be that the winning competitive advantage is one that addresses quality and service. This is because in order to be successful you need to cater to the customers wants and needs (such as fast food delivery, and prompt attention) as well as having a great product.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0

2 years ago

Earl was known for driving 30 miles just to save a dollar on the price of case of his favorite carbonated beverage. Earl perceiv

Marianna [84]

Answer:

Money Paid

Overall Sacrifice

Explanation:

The two major dimensions of pricing are Monetary and Non- Monetary pricing.

Monetary pricing is the liquid asset like cash that is spent to acquire goods and services while the non monetary are other costs apart from money like time , stress , distance that it costs to acquire an item .

The individual perception of pricing has a way of affecting its choice when it comes to purchasing.

Earl did not consider the cost of stress in travelling 30 miles in order to save a $1 in his purchase decision as his mindset is programmed to the price paid being the real price while most other customers considers the sacrifice involved before making a purchase decision.

3 0

2 years ago