One proposal that has floated around Washington, D.C., is to enact a trans action tax on financial
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One proposal that has floated around Washington, D.C., is to enact a transĀ¬ action tax on financial transactions. This tax would be a fee of 1 percent or so on the value of specified financial transactions. Such a fee would disĀ¬ courage short-term investment. How would such a fee affect the supply of loanable funds? Would it have the same effect on the supply of one-year and two-year loans?
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Money Banking And Financial Markets An Economic Approach
ISBN: 9780395643952
1st Edition
Authors: Michael R. Baye, Dennis Jansen
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