to6glaugray9ahstrera
Answered

The U.S. economy begins to slow, so the U.S. prints more currency. What is the risk of this action?

AThe currency will be hoarded.

BThe currency will lose value.

CThe government will gain debt.

DThe government will pressure banks.

Verified Answer :

The U.S. economy begins to slow, so the U.S. prints more currency the risk of this action will be that the 
The currency will lose value
because the more it will print the more it will be in the market so it will lose its value
so correct option from above is B 
hope it helps

likableadvisers

Answer:

B. The currency will lose value.

Explanation:

Inflation is considered a destabilizing factor for the continuity of long-term economic growth. Although in 2011 it allows reimbursing debts with money of lesser value, it will mark the economic forecasts and the fluctuations of the markets. In 2009 virtually no country was spared creating money. Thus, while the Federal Reserve practices a very loose monetary policy, the first blooms of inflation pile up on the emerging countries. In fact, there is causality between the issue of currency, inflation in goods and services and inflation in assets.

Related Questions