Question

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

Answer 1

The answer is Hyperinflation.

Step-by-step explanation:

Hyperinflation is refereed to as, when an economy of a country is out of control, has a very high inflation, in very short time frames, in which prices increase rapidly, while the currency of value of loses.

The increase in the amount of money in circulation only diminish this currency constantly, causing its value to fall rapidly.

Under such conditions, whoever earns or own liquid money tries to get rid of it to buy other currencies or real estate, in this case, will worsen the situation.

Answer 2

The correct answer is B. Hyperinflation.

Step-by-step explanation:

There is hyperinflation in an economy when there is a very high inflation, out of control, in which prices increase rapidly, in very short time frames, while the currency loses its value. The increase in the amount of money in circulation only depreciates this currency constantly, causing its value to fall rapidly. Under these conditions, whoever owns or earns liquid money tries to get rid of it to buy real estate or other currencies, thus worsening the situation.

In the picture below, German Mark became worthless, with kids using it like Lego bricks in 1922-23, after First World War.