Suppose the government decides to reduce taxes today by 1% of GDP, financed by higher borrowing, with

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Suppose the government decides to reduce taxes today by 1% of GDP, financed by higher borrowing, with the borrowing to be repaid 10 years from now with higher taxes. Discuss the various arguments about what effect this will have on the investment rate today.
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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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