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suppose the government of a country wants to achieve long run growth and they are thinking...

suppose the government of a country wants to achieve long run growth and they are thinking they can do this by printing money. is this an effective policy for growth?

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Answer #1

=> ANSWER :: NO

=> Explanation ::

-> By Printing Money And Increase Long Term Economic Growth Is Not An Effective Policy For country To Achieve Long Term Economic Growth Because It Create Many Problems In The Economy. it Does Not Increase Economic Output It Only Increase The Cash In The Economy. It Also leads To Increase The Liquidity In The Market So That Country Have To Face Inflation If They Trying To Create New Money.

-> Printing More Cash Increase The Money In The Hand Of People And They Demand More Goods As Output Is Not Increase Seller Increase Their Prices to Sell Their Goods So It Leads To Inflation In The Market And It Is Critical Situation For Country

-> So If Country Want To Achieve Long Term Economic Growth They Have To Increase The Economic Output In The Country Not By Increasing Cash In Economy.

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