Solved

Which Statement Best Explains Why Governments May Prefer an Inflation

Question 107

Multiple Choice

Which statement best explains why governments may prefer an inflation tax to some other kind of tax?


A) The inflation tax is easier to impose.
B) The inflation tax reduces inflation.
C) The inflation tax falls mainly on high-income individuals.
D) The inflation tax reduces the real cost of government expenditure.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions