During the Revolutionary War, the American colonies could not raise enough tax revenue to fully fund the

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During 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 expenditures is sometimes referred to as an “inflation tax.” Who do you think is being “taxed” when more money is printed? Why?

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Essentials of Economics

ISBN: 978-1337091992

8th edition

Authors: N. Gregory Mankiw

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