Question 1 10 pts How if at all is counterfeiting money immo

Question 1 10 pts How, if at all, is counterfeiting money immoral? Why or why not? hint- Think in terms of what money is and what it represents (Dr Williams and the butcher in the first DB) HTML Editor Paragraph\' T 0 words

Solution

Yes; this is immoral, because it breaks country’s economic standard.

Fake money which can’t be distinguishable from the original money can increase money supply in the society. It increases purchasing power as a whole, like more money flow in the labor market, commodity market, etc. Apparently it looks good, since GDP of the country increases, there would be more investments and employment, etc. But overall it is dangerous, because it indulges inflation; increasing purchasing power beyond the limit creates pressure on the price level; since supply can’t be increased in the short-run because of limited resources, it increases the price level (known as inflation). This thing breaks the standard of monetary policy of the country; therefore, it becomes immoral.