What is a significant cost of inflation?
A) printing more money
B) lower nominal interest rates
C) unintended changes in tax liabilities
D) higher unemployment

Question

Quizplus · Accepted Answer

Inflation can lead to unintended changes in tax liabilities because it can push taxpayers into higher income brackets even if their real income hasn't increased, leading to a higher tax burden. This phenomenon is known as "bracket creep."

What Is a Significant Cost of Inflation