How could the use of money cause problems to individuals and the economy as a whole?

Question

plz its urgent!!

Answer 1

Actually, the mis-use of money. Over extension of credit (credit card debt, consumer debt, bad mortgages) result in the situation we have now. For individuals: increased homelessness, bankruptcy and foreclosure,job loss, increased costs of consumer items. For the economy: lower interest rates; inflation,lack of consumer confidence, lower dollar exchange rate overseas, fluctuations in stock market, eventually higher taxes.

Answer 2

Overspending. Budget deficits. Inflation.