Question

Hyperinflation can occur when consumers begin purchasing more goods. producers need more money to make and distribute goods. companies raise prices to pass on costs to consumers. the government prints a ton of money in order to pay off its debt.

Answer 1

Answer: The government prints a ton of money in order to pay off its debt.

Explanation: Hyperinflation occurs when the value of the local currency degrades and the government starts printing more money to pay off the debts.

The value of money falls when there is a drastic change or hype in the prices of goods and products. This causes people to minimise their holding of the currency and hence the currency valuer decreases. It is due to out of control increase in the jump in prices.

Answer 2

Answer:

The answer is D. on EDGEN.

Explanation:

D. the government prints a ton of money in order to pay off its debt.