If government spending exceeds the amount of taxes collected from households and businesses,the government simply finances the difference by printing more money.

Name: If government spending exceeds the amount of taxes collected from households and businesses,the government simply finances the difference by printing more money.
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Question

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Printing more money to finance government spending leads to inflation and devalues the currency. Governments typically finance deficits through borrowing or issuing bonds.

If Government Spending Exceeds the Amount of Taxes Collected from Households