When production can not keep up with demand, the government which is. powerless in collecting taxes（）

A．can decrease the production amount
B．has to provide more money
C．has to encourage production amount
D．can increase workers’ salary

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 governmental 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 government 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 positive step, it is actually worse off. Every month the government is forced to print more and more money so as to increase the amount of goods it can purchase until it is destroyed. The only way to prevent total economic breakup in such a situation is for the government to increase taxes in a manner that is characterized by equality to every one involved.

正确

错误

正确

错误

正确

错误

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 governmental 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 government 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 positive step, it is actually worse off. Every month the government is forced to print more and more money so as to increase the amount of goods it can purchase until it is destroyed. The only way to prevent total economic breakup in such a situation is for the government to increase taxes in a manner that is characterized by equality to every one involved.

正确

错误

正确

错误

正确

错误