How can the US.budget have a size of 4 trillion dollars if the total value of all dollar bills is only 1.75 trillion?

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  • 9 months ago
    Favourite answer

    The majority of money is not cash. It is credit cards or bank transfers for large amounts. No actual money is needed for most purchases.

    The only thing limiting how much banks can lend out is the fear of defaults.

  • 9 months ago

    Why can't it?

  • 9 months ago

    Welcome to economics.

  • 9 months ago

    The amount of cash you need to spend /circulate each month is no where near your entire wealth .

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  • Anonymous
    9 months ago

    The vast, vast majority of money is digital. 

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