What I mean is if the actual value of the economy is less than the price that has been put on it. So if all the goods and services that the economy generates is worth $100 but we price it at $140 and try and pay for it by borrowing from the future.
Now here is the question... if you do think that this is the case then what are the reasons that it is this way. What geo-political, economic circumstances allow such a way of existence to continue?
2006-07-11 07:00:18 · 1 answers · asked by Cimmerian 1 in Politics & Government ➔ Politics
It's supply and demand. If a product is in high demand, people are willing to pay more for it. If a product is in short supply, company's can charge more for it because the supply is limited. The combination of both of these has an effect on what consumers will pay or are asked to pay.
2006-07-11 07:09:12 · answer #1 · answered by rockinout 4 · 0⤊ 0⤋