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May 26, 2018, 03:01:08 PM |
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Why did not the government print as much money as possible?
Because printing money will affect inflation. So, if a country prints money constantly in large quantities, then it is not called wealth because the value of its currency will actually continue to decline.
In the economy, the price of the goods will depend on the ratio of the amount of money and the quantity of inventory. That is, if the goods in circulation more than the amount of money in circulation then the price will tend to fall.
And conversely, if the amount of goods is less than the amount of money in circulation then the price will tend to rise or commonly called the inflation.
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