Question: What is infrastructure and why is it important for economic growth? Suppose that in order to finance additional infrastructure spending, a country has to raise

What is infrastructure and why is it important for economic growth? Suppose that in order to finance additional infrastructure spending, a country has to raise taxes on other inputs that contribute to economic growth. In principle, what is the rule for how high taxes should be raised in terms of financing additional infrastructure spending? What might be some of the practical difficulties in implementing this rule, particularly in poor countries?

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Infrastructure is any type of capital not owned by an individual business firm that makes the firms ... View full answer

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