Question

The inflation tax is: cost of living adjustments, or COLAs. cost of living adjustments, or COLAs. the decreases in the real value of money held by the public caused by inflation. the decreases in the real value of money held by the public caused by inflation. the result of the indexing wages to inflation. the result of the indexing wages to inflation. the increase in income taxes caused by inflation. the increase in income taxes caused by inflation. the increase in the real value of money held by the public caused by inflation.

Answer 1

Answer:

the decreases in the real value of money held by the public caused by inflation

Explanation:

The inflation tax refers to the penalty on the cash when the inflation rise is increased. In the case when the inflation increase so the cash would become less valuable

So as per the given situation when there is a reduction in the real value of the money so it would be held by the public that can result by the inflation

Therefore the same is considered