Constantly strapped for funds

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As king of Medivalia, you are constantly strapped for funds to pay your army. Your chief economic wizard suggests the following plan: “When you collect your tax payments from your subjects, insist on being paid in gold coins. Take those gold coins, melt them down, and remint them with an extra 10 percent of brass thrown in. You will then have 10 percent more money than you started with.”What do you think of the plan? Will it work?

Reference no: EM131194517

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