The willingness of people around the world to use and hold dollars allows the U.S.government to increase the money supply without the immediate risk of inflation.

Question

Quizplus · Accepted Answer

This statement is true. The demand for dollars worldwide means that when the US government increases the money supply, people are willing to hold and use the additional dollars, rather than immediately pushing up prices and causing inflation.

The Willingness of People Around the World to Use and Hold