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4 years ago

The inflation tax refers to

Business

2 answers:

Mandarinka [93]4 years ago

4 0

Answer:

The correct answer is letter "D": the revenue a government created by printing money.

Explanation:

<em>When the government prints more money, there will be more supply of it. A higher supply of money tends to increase general prices causing inflation. Therefore, households will have to pay more money for goods and services which implies they will be paying more taxes, benefiting the government since it will have more money to finance its projects. </em>

The previous practice mentioned is implemented by governments that are not willing to increase the interest rate directly.

Daniel [21]4 years ago

4 0

Answer:

The correct answer is option D) the revenue a government created by printing money

Explanation:

Inflation tax is not actully a tax. It is the price, extra cost that people have to bear as the inflation keeps increasing.

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