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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Durii,g the Revolutionary War, the American colonies
could not raise enough tax revenue to fully fund the
war effort. To make up the difference, the colonies
decided to print more money. Printing money to cover
exp en di tures is sometimes referred to as an ''inflation
tax.'' Who do }'OU thii,k is being "taxed" when more
monC}• is printed? Why?
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