The major source of government revenue in most countries that are experiencing hyperinflation is:
A) customs duties.
B) income taxes.
C) seigniorage.
D) borrowing.

Question

Quizplus · Accepted Answer

Seigniorage is the revenue earned by the government through the process of printing money. In times of hyperinflation, the government may resort to printing an excessive amount of money to finance its expenses, leading to a loss in the currency's value. This results in increased seigniorage revenue for the government. Other sources of revenue such as customs duties, income taxes, and borrowing may be significantly affected by hyperinflation and therefore may not be as significant as seigniorage.

The Major Source of Government Revenue in Most Countries That