A monetized debt prompts:
A)a contractionary fiscal policy.
B)an inflationary tax.
C)a contractionary monetary policy.
D)an expansionary tax base.

Question

Quizplus · Accepted Answer

An inflationary tax refers to the erosion of the real value of money as a result of inflation, which can occur when governments finance spending by printing more money, leading to a decrease in money's purchasing power. This is often linked to the concept of monetized debt, where the government pays off its debt by creating more money, potentially leading to inflation.

A Monetized Debt Prompts