Whats wrong with this way of thinking

Reference no: EM13245798

Money and Budget Deficits

What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays its bills by printing more money. As the newly printed money works its way through the economy, it waters down the value of paper money already in circulation. Thus, it takes more money to buy things. Budget deficits are the major cause of inflation." needs to be around 75 - 150 words.

Reference no: EM13245798

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