Inflation is sometimes called the arbitrary tax because
A) we never know when inflation will occur.
B) the rate of inflation is very difficult for economists to predict.
C) the rate of inflation is set by the government.
D) inflation affects the prices of various commodities in unpredictable ways.
E) its rewards and penalties are meted out with little regard for society's values or goals.

Question

Quizplus · Accepted Answer

Inflation is called the arbitrary tax because its rewards and penalties are meted out with little regard for society's values or goals. Inflation affects different segments of society unevenly, and those who suffer the most are often those who can afford it the least.

Inflation Is Sometimes Called the Arbitrary Tax Because