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Zarrin [17]
3 years ago
5

Why can’t we just print more currency to solve financial problems ?

Social Studies
2 answers:
Helen [10]3 years ago
6 0
It would create more problems. Inflation would rise, value of money would lessen
grigory [225]3 years ago
3 0

Answer:

It would not solve any financial problems, it would cause more.

Explanation:

If we print a lot of money, more money goes into the economy so everyone essentially gets "more" money. While this seems like it would be good, it actually is not.

If everyone has a lot of money, money loses its value because so many people have it. As a result, there is inflation (the prices of goods go up) and money becomes virtually worthless, which is terrible for our economy.

Also, our money in relation to other countries becomes less valuable. For example, as of right now, 1 USD (US Dollars) is the same as 675 Chinese yen. If we printed more USD, 1 USD would equal less and less Chinese yen until eventually 1 USD and 1 Yen would be worth the same amount. This would be disastrous because trade would be negatively influenced.

In summary, printing more currency means everyone has money which destroys our economy because the currency loses its value.

I hope this helps! :)

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