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Countries That Employ an Inflation Tax Do So Because

Question 32

Multiple Choice

Countries that employ an inflation tax do so because


A) The government doesn't understand the causes and consequences of inflation.
B) Government expenditures are high and the government has inadequate tax collections and difficulty borrowing.
C) An inflation tax is the most progressive (paid by the rich) of all taxes.
D) An inflation tax is the most equitable of all taxes.
E) The government has a balanced budget.

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