The money creation (seigniorage) to finance government purchases a. is inferior to a non distortionary tax in terms of welfare b. has the same effects in welfare as a non distortionary tax c. has better welfare effects compared to a non distortionary tax d. is the optimal policy in terms of welfare

The money creation (seigniorage) to finance government purchases a. is inferior to a non distortionary tax in terms of welfare b. has the same effects in welfare as a non distortionary tax c. has better welfare effects compared to a non distortionary tax d. is the optimal policy in terms of welfare

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 76DC

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The money creation (seigniorage) to finance government purchases

is inferior to a non distortionary tax in terms of welfare

has the same effects in welfare as a non distortionary tax

has better welfare effects compared to a non distortionary tax

is the optimal policy in terms of welfare

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