The inflation tax is the effect on the public of:
A) the higher tax paid by individuals whose incomes are indexed to inflation.
B) the sales taxes paid during periods of inflation.
C) the reduction in the value of money caused by inflation.
D) the higher prices consumers pay due to inflation.
Correct Answer:
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Q3: If the monetary authorities decide to increase
Q21: As people get used to inflation:
A) the
Q25: In economies with persistently high inflation, an
Q28: Fiat money is:
A) money backed by gold.
B)
Q28: Use the following to answer questions :
Figure:
Q30: In economies with persistently high inflation, an
Q33: The inflation tax is equal to:
A)inflation multiplied
Q34: Historical evidence has led economists to conclude
Q37: Use the following to answer questions :
Figure:
Q39: The main difference between the classical model
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