When it is said that outside money is produced at zero cost, it means that the production of money by a central bank or government does not result in any direct costs or expenses. This is because centralized authorities have the ability to create money electronically through processes such as printing physical currency or adding digital currency to the financial system without incurring any tangible production costs.
However, it is important to note that although the production of money itself may not incur costs, there can be indirect costs associated with the creation of money such as inflation or decreased value of the currency. Additionally, the distribution and management of money, as well as other economic implications, can result in costs to the economy as a whole.
It is said that outside money is produced at zero cost. What does it mean by zero cost
1 answer