The likely effect of a country printing additional currency to pay its debts is:
A)high inflation.
B)devaluation of the currency.
C)appreciation of the currency.
D)A and B

Question

Quizplus · Accepted Answer

Printing additional currency leads to an increase in the supply of money, which in turn leads to a decrease in the currency's value(Devaluation of the currency). This decrease in value leads to high inflation, as it increases the price of goods and services, making it more expensive to purchase them. Hence, both options A and B are the likely effects of a country printing additional currency to pay its debts.

The Likely Effect of a Country Printing Additional Currency to Pay