why must old currency be taken out of circulation when new currency is made?○ the old currency is more…

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.

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.

Answer

Brief Explanations:

When new currency is introduced without removing old currency, the total money supply in the economy increases. An excessive money supply relative to the available goods and services leads to inflation, as more money chases the same amount of products, driving up prices. The other options are incorrect: old currency is not inherently more valuable, new currency does not have greater liquidity, and excess currency does not create real artificial wealth but rather inflationary pressure.

Answer:

Too much currency in an economic system will cause inflation.