Question

What will be consequence of printing more money? a. People who held money would feel poorer....

What will be consequence of printing more money?

a.

People who held money would feel poorer.

b.

Prices would rise.

c.

People who had lent money at a fixed interest rate would feel poorer.

d.

All of the above are correct.

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Answer #1

"D"

Printing more money will decrease the value of the money and that will reduce the purchasing power of the money in the market, that will make people feel poorer, increase the inflation in the market and lending on fixed interest rate will lead to transfer of wealth. The answer is "D".

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