Respuesta :
Answer:
During a period of high inflation the government actions that can preserve the Value of money are: selling gold for use as an alternate currency, and restricting the money supply by adjusting interest rates.
Explanation
Read more on Contractionary Monetary Policy, Reserve Requirements, and Reducing the Money Supply measures,
The government actions that can preserve the value of currency during a period of high inflation are the sale of gold and putting restrictions on the money supply.
What is inflation?
Inflation is the situation where the prices of goods and services are rising and the purchasing power of people is decreasing.
During the times of inflationary periods, the use of gold for selling purposes as an alternative method in the place of currency and making interest rate adjustments by restricting the money supply are the actions taken by the government in regulating the value of the currency in the country.
Therefore, the sale of gold and restricting the money supply are the two actions used by the government in periods of inflation.
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