Originated From
 AOL Search

Posted by bbundy07 4 years ago In:

bbundy07
bbundy07 Asked:

Why must an economy's income equal its expenditure?

Liked this question? Tell your friends about it

Answers

Book
Book Answered:

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.
Add a comment Report

Related Questions

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

Anonymous

Asked: Any private school out there in Singapore with ...

Any private school out there in Singapore with best of education..
  • Posted 28 days ago
MM10301

Asked: Who was paying for bombers dzhokhar tsarnaev ...

who was paying for bombers dzhokhar tsarnaev education
  • Posted 29 days ago
Wyatt Dickerson

Asked: Wired education foundation

wired education foundation

More Questions

Economy

Obama's "Fast and furious" debacle (of his many hairbrain debacles) have proved disastrous for everyone. We have suffered too much already because of Obama's unacceptable performance in office and the bitteress of his few remaining followers. That explains why Obama's followers have been ...

Have any ideas for a second income?‎

Make Money Online if u want to earn money then u can work on internet. http://www.true-home-business.com

What's residual income?

In my opinion, the amount of income that an individual has after all personal debts, including the mortgage, have been paid. In business, residual incomes are extra amounts of operating income over the regular minimum of controllable operating assets, example royalties.

Education & Reference

More