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I have a question don't the government just print out more money during economic crisis like in the great depression even modern times why dint it help economy i ask this because at school their is a great depression unit we are learning and i asked my teacher why they did not just print out more money she said it just loses its value or something like that can someone give me a more vivid description
PRINT MONEY BAD PRINT MONEY MAKE INFLATION PRINT MONEY MAKE WAL-MART PRICES GO UP
Money is universal goods. It means, for example one $ = one rabbit = few tomatoes = 1 cup of tea, etc. (it is just an example to imagine what is universal goods.) So if you have something universal things (goods) like money you can exchange it for some other goods (tea, rabbits, rings...) or services (haircut, massage, gardening, private lessons...) Well, if there are not so many goods (rabbits, carrots, tvs,...) and services than you will have money, but you will not be able to buy anything, because it is not enough. new-jersey everyone will make their goods and services more expensive and then you will spend more money... So to print money is not enough. Enough is to produce more real goods and services. It makes the economy strong.
Good question; well printing money reduces the value of money causing uncertainty in the economy; in general more money is available in the economy causing GDP n aggregate demand to rise at lower interest rate; the excess aggregate demand causes price level to rise, which in turn reduces the value of money; excess printing money can cause hyperinflation
If you have a rookie baseball card that is the only one in existence, it may have a lot of value. If ten thousand other people have the same card it will have a much lower value.
Because if everyone had more than enough money and there is loads of money in the world, money will be worthless. The less money there is in the world, the more valueable it gets. The more money there is in the world, the less valueable.