Hyperinflation (极度通货膨胀) is defined as an economic condition during which there is steep increase in price.
In accordance with the laws of economics, three factors combine to create this condition. Firstly, demand must be much greater than the supply of-available goods. Secondary, the country must continuously create and thereby build up an ever increasing supply of money. Thirdly, the govermnental processes that are used to collect taxes must be destroyed.
Let’s imagine a country where production is barely accomplishing its goal: to keep up with demand. When this happens, the govermnent should decrease the salaries of the workers by raising taxes. But the government is powerless to collect the taxes, so it prints more money to make up for the goods it must purchase. This new money goes to the workers who produced the goods; as a result, the people are not forced to give up certain things for a while. They actually become richer. While this might appear to be
A. Demand is much greater than supply.
B. The country continuously supplies money.
C. The government is able to collect taxes by the existing processes.
D. The government is powerless in collecting taxes.
我来回答: