Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 1

As a result of the federal bailouts of U.S. corporations, the government ended up owning shares of stock and warrants in many companies (Warrants are rights to own future shares of stock). How would subsequent changes (up or down) in the prices of these stocks affect the taxes owed by taxpayers for any given level of federal spending? Explain.