Durii,g the Revolutionary War, the American coloniescould not raise enough tax revenue to fully fund thewar effort. To make up the difference, the coloniesdecided to print more money. Printing money to coverexp en di tures is sometimes referred to as an ''inflationtax.'' Who do }'OU thii,k is being "taxed" when moremonC}• is printed? Why?

Durii,g the Revolutionary War, the American coloniescould not raise enough tax revenue to fully fund thewar effort. To make up the difference, the coloniesdecided to print more money. Printing money to coverexp en di tures is sometimes referred to as an ''inflationtax.'' Who do }'OU thii,k is being "taxed" when moremonC}• is printed? Why?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter15: The Debate Over Monetary And Fiscal Policy

Section: Chapter Questions

Problem 8DQ

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