Originated From
AOL Search

Why must an economy's income equal its expenditure?

Liked this question? Tell your friends about it

Answers

A nation's economy is no different than your personal finances; You can't spend more than you earn.  Well, you can, but borrowing to live beyond your means is risky, even for a country.

While the Government can print as much money as it chooses, it has to have some kind of assets to back it up.  Otherwise, it will, eventually, not be worth the paper it's printed on. 

I'd agree with you, but then we'd both be wrong.

Related Questions

Other people asked questions on similar topics, check out the answers they received:

Asked: How can I help educate a child?

How can I help educate a child?

Asked: Education University

My daughter is going to complete her higher secondary education. I want her to pursue her higher education in a well-recognized international university. Can someone guide me how and where to join my ...

Asked: How soon must cash received by a board of ...

how soon must cash received by a board of education in new jersey be deposited?

Be The First To Answer

Other people asked questions on various topics, and are still waiting for answer. Would be great if you can take a sec and answer them

Ask a Question... We'll forward it to people who know

More Questions

I need a proof of income for the last 30 days mailed to me

Pay stubs would be sufficient. If you get paid in cash, ask your employer to write a letter showing your income.

Is economy of scope somehow related to socially responsible economy

"Oh, my goodness liberals get slaughtered" "Oh, my goodness liberals get slaughtered"

Is astm a570 is equal to astm a1011

Hi, As far as I remember ASTM A570 Grade C is equivalent to ASTM A1011 Grade 33. I hope my memory servres me well (I don't want to mislead you). I am only 95% sure I am right... (better cross check it). Best regards,

Protection of Income as a tax deduction

Very good answer given by PGroot.