In the long run, excess money printing by the government always causes inflation and economic busts.

Question

Quizplus · Accepted Answer

When the government prints excess money, the supply of money in the economy increases, which leads to an increase in demand for goods and services. This increase in demand can result in higher prices, also known as inflation. Inflation can erode the value of savings and reduce purchasing power, which can ultimately lead to economic busts.

In the Long Run, Excess Money Printing by the Government