0
The previous answer, while thorough, was a complete and utter lie and made no sense at all.
If the government prints more money, then prices will go up, and so no problems would be solved. Think of it this way. If you and a storekeeper are the only two people in a country, and you each have $10, you might pay your $10 for some food. If the government printed more money and then you both had $20, now the storekeeper would want $20 for that same food.
It's the same thing in real life, but with more people.
Still curious? Ask our experts.
Chat with our AI personalities
Maxine
Rene
FranAdd your answer:
Earn +20 pts
Why can't you just print more money to help boost the economy?
We cant just print more money because we have to mach the money in gold. So if we make more money thin it would be less for later things. (such as wars and disaster response.)
What is the relationship between current account deficit and inflation management in India?
The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.
What does the government do when it spends more than it collects in taxes?
It must either "borrow" it from somewhere, creating a budget deficit - or - they must print more money, devaluing the nation's currency and causing inflation.
Why can't the Treasure Dept. just print more money when the government - or individuals - run out?
Because it would devalue the current dollar... basically, it makes the dollar worth "less"
How do they increase the money supply in the economy?
They print more bills in the Treasury.
