7
lesson pretestMultiple Choice

Pretest

Question 7 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

When government intervention makes currency worthless, this condition is called

Answer
A
hyperinflation.
B
demand-pull inflation.
C
deflation.
D
cost-push inflation.

Explanation

Hyperinflation is an extremely rapid and severe rise in prices that can make a currency nearly worthless. Deflation is a general fall in prices, while demand-pull and cost-push inflation describe causes of rising prices rather than this extreme condition.

AI-written and checked against the verified answer.

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