How different government actions affect various groups

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Question: Throughout the text we have emphasized how different government actions affect various groups in the population differently.

a. Assume the government is considering whether to finance a war by borrowing or by taxes. Describe how different groups are affected by the two alternatives.

b. Assume the government is considering whether to reduce the deficit by increasing capital gains taxes or by increasing payroll taxes. Describe how different groups are affected by the alternatives.

Reference no: EM131442409

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