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Increased in value of money. If the currency increases in value then that means the amount owed by the government also gains in real value as well. As a result the government will do whatever it takes to inflate the debt away.

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10y ago
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10y ago

Congree had to borrow money to to pay for the Revolutionary War with Great Britain.

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Q: What causes the federal government to borrow money?
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Related questions

The power of the federal government to borrow money is?

constitutionally limited

What advantages does the federal government have when trying to borrow money from investors?


To combat a crisis situation in the past congress was allowed to?

Borrow money from the Federal Government

How does the Federal Government borrow money?

The federal government borrows money from issuing Treasury bonds. The bonds are bought by people, businesses and other government agencies. The bonds work by people lending money to the government who in turn pays back that money plus interest.

Who borrows money from federal reserve banks?

All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.

Who decides how much money the government has to borrow?

Nobody decides how much money the government has to borrow. When the government wants to borrow money it has to issue or create debt with the US Treasury.

Is borrowing money a delegated power?

To borrow money is a concurrent power. This means that the power is shared by both the State and the federal government, and is exercised simultaneously.

Can states borrow money?

yes. states can borrow money from citizens through government bonds

What was the causes of the Panic in 1837?

The federal government stopped accepting paper money for the purchase of land.

What branch of government can borrow money?

The Executive Branch

From whom does the government borrow money?

The UK government in common with many first-world governments issue "gilt bonds" into the financial markets which return a fixed guaranteed interest.from the federal reserve.

Which powers are concurrent or shared by the states and federal government?

the 3 concurrent powers shared by the national and state government are trade,commerse, and education.