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.

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