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The framers of the Constitution allows for the government to borrow money in order to finance public projects. An example of this would be the money borrowed for the Louisiana purchase.

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How does congress go about regulating the value of money?

(a VERY simplified answer) By regulating the supply of money in circulation and the interest rates for borrowing from the US Treasury.


What is the relation between Public borrowing and price level?

if the increase the public borrowing increase the price level of economy.


What is domestic borrowing?

Domestic borrowing refers to the process by which a government or entity raises funds from within its own country, typically through the issuance of bonds, loans, or other financial instruments. This type of borrowing is often used to finance public projects, manage budget deficits, or stimulate economic growth. It can involve borrowing from local banks, financial institutions, or individual investors. Domestic borrowing is generally considered less risky than foreign borrowing, as it is denominated in the country's own currency.


What activity is borrowing money?

Borrowing money is the act of obtaining funds from a lender with the agreement to repay the amount borrowed, usually with interest, over a specified period. This can occur through various means, such as loans, credit cards, or lines of credit. The borrower typically must agree to certain terms and conditions set by the lender, which may include repayment schedules and collateral requirements. Ultimately, borrowing money allows individuals or businesses to access immediate resources for various purposes, such as investments, purchases, or emergencies.


What are the advantages of a stable currency?

Advantages of a stable currency can include lower borrowing costs and low inflation. A better economy and more investing are other advantages of stable currency. Stability creates confidence. It also allows for better planing as the problem of widely fluctuations in these markets keeps investors away leading to the possibility of even more instability. It's not always clear why this can lower borrowing costs.

Related Questions

Who creates caps on government borrowing?

congress


Is borrowing money one of the powers of congress?

Yes


Is congress prohibited by the constitution from borrowing money?

False


Which branch of government is in charge borrowing and spending money in the US?

Congress


What does the elastic allows congress to do this?

What does the elastic clause allow Congress to do?It allows Congress to create laws or stretch laws which they think are necessary.


Which class of network license allows the borrowing of 15 bit to create subnets?

- is A


What clause that allows congress to have unlisted powers?

Unlisted powers of congress


What does the war powers act allow congress to do?

Allows congress to officaly declair war.


What is the part of the constitution that allows congress to regulate the television?

the part of the constitution that allows congress to regulate the television industry is the commerce clause


How does congress go about regulating the value of money?

(a VERY simplified answer) By regulating the supply of money in circulation and the interest rates for borrowing from the US Treasury.


What are the advantages of borrowing money?

Borrowing money can provide individuals and businesses with access to capital for investments, such as starting a business, purchasing a home, or funding education. It allows for the leveraging of funds to potentially generate higher returns than the cost of borrowing. Additionally, borrowing can help smooth out cash flow fluctuations and provide flexibility in managing financial obligations. However, it is essential to carefully consider the terms and conditions of borrowing to ensure it aligns with long-term financial goals and does not lead to unsustainable debt levels.


Does the Constitution limit the nation's debt?

No. In the U.S., the Constitution places all authority for borrowing and spending in the hands of Congress. The Constitution does not place a limit on the amount that the country may borrow. Because it was inconvenient for Congress to get involved every time the Treasury needed to issue a security, Congress passed a law in 1917 which allows the Executive Branch, specifically the U.S. Treasury, to borrow money as necessary, provided that the total amount borrowed remains within a limit set by Congress. Currently (July 2011), that limit is set at $14.3 trillion.