why the government doesn’t have infinite money.

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why the government doesn’t have infinite money.

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Anonymous 0 Comments

A government can always increase the amount of money it has in circulation either physically or just on paper. The issue is they can’t increase the amount of goods available to purchase with that money.

As more money becomes available and the number of things it can purchase remains the same, then inflation is the result. Goods will cost more because of basic supply and demand.

Take a look at Venezuela for an example of how this pans out. When the money is worth less than the paper it’s printed on.

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