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21 August, 03:26

When governments print more money because they lack revenue, one result may be

a. Hypertaxation.

b. Hyperinflation.

c. Hyperdeflation.

d. Hyperdevaluation?

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Answers (1)
  1. 21 August, 03:37
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    The correct answer would be option B, Hyperinflation.

    Explanation:

    When the prices of goods and services increase and keep on increasing, the result would be Inflation in the economy of the country.

    Inflation causes the weakening of a country's currency. When governments print more money because they lack revenue, and don't put equivalent amount of gold or any other precious thing in the reserves, one result may be Hyperinflation.

    Hyperinflation is caused by the increased money supply in the economy. When more money or currency is is circulation than saved in the banks or other financial institutions, the economy would most likely to face hyperinflation.

    That is why governments usually issue treasury or bonds to get money from people and limit the circulation of currency to strengthen the economy.
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