Best Answer

If the government prints too much money and inflation gets out of hand, investors will not trust the government and it will be hard for the government to borrow anything at all.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why does prices rise when the government prints too much money?
Write your answer...
Still have questions?
magnify glass
Related questions

Which of the following is an example of a positive statement?

Prices rise when the government prints too much money.

Does prices rise high when government prints too much money?

Yes absolutely.... its not the proper way of doing it. but still its exists....

Why do prices rise when the government prints to much money?

Well when your government prints more money, they still have the same amount of gold, so the gold is worth less of your country's money. The same applies to food and other items. As money is worth less, it buys less things

What is most likely to happen if the Fed prints too much currency?

If the Fed prints too much currency, it can lead to inflation as the increased money supply reduces the value of the currency. This can result in rising prices for goods and services, decreased purchasing power, and economic instability.

How much money does the US government print a day?

The US prints 38,000,000 bills a day. Source: Pawn Stars on the History Channel.

What is the result when a government prints paper money without gold to back it up?

When the government prints paper money without the gold to back it up, the result is inflation.

How much prices of goods and services are rising?

Inflation is where prices overall are rising. This is caused by the over printing of money by the Government.

What can governments do to improve their economies?

Learn to survive the econimic crisis. When the government prints too much money and it isn't worth anything anymore you have to be prepared.

What basis US government prints more dollars?

The government is always printing money, but it is up to the Federal Reserve to release it. The Federal Reserve decides when and how much. This last week they released more money into the economy by purchasing new bonds from the U.S. government. This will likely promote inflation.

What is it called when a nation prints too much money?

An expansionary monetary policy.

How cheap is canvas printing at Walgreens?

Prices for canvas prints at Walgreens depend on the size of the print one wishes to purchase. Large prints on canvas can cost as much as $45. Smaller prints on canvas may cost as little as $20.

How much is sherm pehrson's bird prints worth?

Sherm Pehrson has several different bird prints available. The prices vary from $18.00 up to $38.00. You can speak to your local gallery about the print types.