Government revenue from printing money is referred to as ________.

Question

Quizplus · Accepted Answer

Seigniorage is the revenue earned by the government from printing money. When a government prints additional currency, it can increase the money supply in circulation, leading to inflation as prices rise due to an excess of cash. To cover the increased costs of goods and services, the government may use the higher prices to increase their revenue. As a result, seigniorage is the difference between the value of the physical currency produced and the cost of production (including printing, delivery, handling, and the cost of the materials used in its creation).

Government Revenue from Printing Money Is Referred to as ________