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<strong>Interest</strong> The charge made to a borrower for use of a lender' s money.
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optimal taxation (H2)<br />A tax structure maximizing sociAL WELFARE. As a taxation system uses a variety of taxes, optimal income taxes and optimal commodity taxes have to be determined simultaneously. Optimality is obtained by a correct TRADE-OFF between economic efficiency and distributional objectives_<br /><em>See also:</em> Ramsey rule
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