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Why must old currency be taken out of circulation when new currency is made?The old currency is more valuable than the new currency.The new currency is much more liquid than the old currency.Too much currency in an economic system will cause inflation.Too much currency in an economic system will create artificial wealth.

Sagot :

Answer: C Too much currency in an economic system will cause inflation.

Parrain

The reason why old currency must be removed from circulation when a new currency is made is that Too much currency in an economic system will cause inflation.

How does money supply cause inflation?

When there is a high amount of money in an economy, things will become more expensive because most people will be able to afford goods if their prices stayed low because most people would have money.

Old currency therefore needs to be taken out of the economy or else there would be too much money in the economy, and prices would rise.

#SPJ5

Find out more on inflation at https://brainly.com/question/9550518.

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