Question

Do you think there is a real threat that the US might resort to printing money...

Do you think there is a real threat that the US might resort to printing money if tax revenue would become insufficient to cover the desired spending by the government? Why or why not?

Homework Answers

Answer #1

Printing money is the option to overcome the budget deficit it would lead to inflation in the long run and the value of dollar will fall in the international market and with the fall in the value of US dollar, various trade deficit for US dollar where the balance of trade is in negative means imports are more and export less relative to each other and even more worsening of the US dollar and that is the reason by printing money than required is always a threat.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why do governments sometimes pay for their spending by printing more money? Why do economists refer...
Why do governments sometimes pay for their spending by printing more money? Why do economists refer to this as an ‘inflation tax” that can result in very harmful results?
Why do you think entities resort to countertrade instead of buying/selling the traditional way by exchanging...
Why do you think entities resort to countertrade instead of buying/selling the traditional way by exchanging consideration such as money?
If you were the bad guy which threat would you exploit and why? Which threat do...
If you were the bad guy which threat would you exploit and why? Which threat do you think will have the greatest impact on society as a whole in the next year?
what do you think adam smith might have meant by a statement,money is a veil
what do you think adam smith might have meant by a statement,money is a veil
Why do you think Toyota is planning on increasing their investment in the US? Should there...
Why do you think Toyota is planning on increasing their investment in the US? Should there be a concern about increased cost of production as Japan’s investment increase? What role did tariffs play in Toyota’s decision to build new plants, and refurbish existing plants in the US? Do you think the tax reform and the tax rate decrease of approximately 43 percent on corporations in the US played a role in Toyota’s decision?
1. What do you think is necessary in the US to increase economic growth? 2. Do...
1. What do you think is necessary in the US to increase economic growth? 2. Do you think that the US government should privatize remaining assets (think of the post office (negative profit for years), DMV, and Amtrak (high prices))?
How do you think the US can become the leader in the world economy again?
How do you think the US can become the leader in the world economy again?
The United States federal government is responsible for meeting the spending obligations of the US government,...
The United States federal government is responsible for meeting the spending obligations of the US government, or its "unpaid bills." Krugman & Wells (2015), explained if taxes are insufficient to cover government spending then the federal government must borrow to cover the difference. These government borrowing are US Treasuries (Chapter 10, Matching Up Savings and Investment Spending). Reuters (2018, February 18) reported, “…tax reform is expected to add as much as $1.5 trillion to the federal debt load, while the...
Do you think we still see a lot of accountants out there that might be involved...
Do you think we still see a lot of accountants out there that might be involved in questionable behavior? do you think that the consequences are harsh enough? Why or why not?
Do you think we still see a lot of accountants out there that might be involved...
Do you think we still see a lot of accountants out there that might be involved in questionable behavior? do you think that the consequences are harsh enough? Why or why not?