A policymaker is deciding how to finance the construction of a new airport. He can either pay

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A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens’ taxes or by printing more money. What are some of the short-run and long-run consequences of each option?

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:45 AM

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A policymaker is deciding how to finance the construction of a new airport. He can either pay

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Raising taxes will lead to reduced spending in the economy This will cau...View the full answer

Principles of economics

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