"Inflation tax" means that:
A)as the price level rises, taxpayers are pushed into higher tax brackets.
B)as the price level rises, the real value of money held by the public
C)decreases. as taxes increase, the rate of inflation also increases.
D)in a hyperinflation, the chief source of tax revenue is often the printing of money.

Question

Quizplus · Accepted Answer

Inflation tax refers to the decrease in the real value of money held by the public as the price level rises, effectively acting as a "tax" on holding money.

"Inflation Tax" Means That