Taxes and Borrowing

Read chapter 6 on pages 152–154. Consider the pros and cons of borrowing and/or raising taxes to finance a deficit. When is each policy better than the other? Hint: Think about economic cycles.

Click http://web.archive.org/web/20160326044637/https://mpra.ub.uni-muenchen.de/6403/1/MPRA_paper_6403.pdf link to open resource.