send your client an email with a project and risk status. You ask for feedback on project performance. Which best practice shoul
1 answer:
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Answer:
- The federal government reserves the power to print money.
- By printing money to pay its debts, the government decreases the value of money and causes the inflation tax.
Explanation:
As per the Constitution, the Federal government reserves the sole right to print currency. This ensures that all the states have a stable medium of exchange thereby allowing goods and services to flow across states undisturbed.
When the government prints money to enable it pay off its debt, the value of the currency decreases because the supply of money has increased relative to its demand. As a result, the currency will only be able to buy less than it was able to buy before thereby creating a sort of inflation tax because people would be paying an extra amount in order to purchase goods and services
