The inflation tax is considered a bad tax because
A) it is a heavy tax on a narrow base of economic activity - holding wealth as cash balances.
B) it is a heavy tax on a narrow base of economic activity - holding wealth as demand deposits.
C) it is a heavy tax on a narrow base of economic activity - holding wealth as stocks.
D) it is a heavy tax on a narrow base of economic activity - holding wealth as bonds.
Correct Answer:
Verified
Q47: Moderate inflation has proven to be
A) popular
Q48: Hyperinflations arise when governments attempt to obtain
Q49: A government that finances its spending by
Q50: If the government increases the money supply
Q51: If the government increases the money supply
Q53: One of the distinct possibilities of a
Q54: One problem with the quantity theory of
Q55: One problem with the quantity theory of
Q56: Economic theory suggests that money demand should
Q57: The nominal interest rate is
A) the sum
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