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Suppose you explain the concept of an inflation tax to a friend. You correctly tell them, "When a government prints money to cover its expenditures instead of taxing and borrowing, it causes inflation. An inflation tax is simply the erosion of the value of money from this inflation. Therefore, the burden of the tax lands on those who hold money." Your friend responds, "What's so bad about that? Rich people have all the money, so an inflation tax seems fair to me. Maybe the government should finance all of its expenditures by printing money."
• Is it true that rich people hold more money than poor people do?
• Do rich people hold a higher percent of their income as money than poor people?
• Compared to an income tax, does an inflation tax place a greater or lesser burden on the poor? Explain.
• Are there any other reasons why engaging in an inflation tax is not a good policy?
• Who is responsible for who is wealthy and who is not wealthy in this country and why?
• How does money flow from the less fortunate to the more fortunate? Is the system broken? Explain
Manager of a computer company plans to spend on new hardware $3.5 million in the first year with amounts decreasing by $0.2 million each year thereafter. Income of the company is expected to be $8.0 million the first year increasing by $0.3 million e..
Looking at all commercial banks in the United States, _______ is the largest category of liabilities.
Explain the effect of price ceiling also price floor with reference to the concept of price elasticity of demand.
Economics has a notoriously bad reputation among students. They assume it will be dry, boring, and not relevant to their lives. They also think it's hard because the course content must be understood rather than memorized. Why do you think economics ..
q. you sell a commodity in a market that resembles perfect competition and your cost function is cq 2q 3q2.
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countries to their current markets. If the agreement is reached, operations are exp..
q.consider the following extended classical economy in which the misperceptions theory holdsad y 300 10mp.sras y ? p
Explain how would you try to convince him that this is probably not the right way to look at international trade and its effects on the country.
Explain how does the empirical rule help to explain the ways in which values in a set of numerical data cluster and distribute.
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
if you deposit $1000 now, $3000 four years from now follows by five quartely deposite decreasing by $500 per quarter at an interest rate of 12% per years compounded quartely. how much will you have in your account 10 years from now?
If Congress took steps to consolidate banks, thereby reducing total number to 2500, what would you expect to happen to costs within banking industry.
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