Explain why taxing real interest and real capital gains as opposed to nominal interest and nominal capital

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Explain why taxing real interest and real capital gains as opposed to nominal interest and nominal capital gains, but allowing the deduction of nominal interest rather than real interest, would still result in too little saving and too much borrowing and spending.
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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