What happens if someone prints a million dollars and spents it in some village?

Prices in that village will go up, there will be a boom there as many people start businesses there to sell their products to the counterfeiter. Money that otherwise would have been invested in other parts of country will now be invested in that village. Products that would otherwise have been sold in other parts of the country will now be sold in that village, to that person, so prices will also go up everywhere else.

When the million dollar is all spent, they will all go broke. The counterfeiter can either print even more money, eventually leading to a hyperinflation or let the bubble burst.