What would happen if the government printed more money

Reference no: EM133711046

Question: You help your neighbor paint her house, and she decides to pay you $100 for helping her. She pulls two bills out of her pocket, a $1 bill and $100 bill to pay you. Then she looks at you and asks the following questions: These two bills have the same size and are made of the same material, but one of them is worth more. Why? If the $100 has very little material value, how does it keep its value (purchasing power) tomorrow or next month? If money is good for the economy, what would happen if the government printed more money and gave each person in the country $50,000? Wouldn't this be awesome?

Reference no: EM133711046

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