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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  • 1 month ago
    Favorite 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.

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  • 1 month ago

    Why can't it?

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  • 1 month ago

    Welcome to economics.

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  • 1 month ago

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

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  • Anonymous
    1 month ago

    The vast, vast majority of money is digital. 

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