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During Hyperinflation Real Tax Revenue of the Government Often Drops

Question 67

Multiple Choice

During hyperinflation real tax revenue of the government often drops substantially because of the:


A) delay between when a tax is levied and when it is collected.
B) significantly greater menu costs of printing tax forms.
C) additional deductions taken for increased shoeleather costs.
D) greater uncertainty associated with extreme rates of inflation.

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