Which of the following statements about inflation is true? A. Inflation is not a problem because it is just another way for the government to collect revenue—an alternative to the income tax or the sales tax. B. Inflation is a tax on holding money. C. Inflation occurs when real GDP grows more rapidly than the quantity of money. D. Inflation is a tax on spending money.
Which of the following statements about inflation is true? A. Inflation is not a problem because it is just another way for the government to collect revenue—an alternative to the income tax or the sales tax. B. Inflation is a tax on holding money. C. Inflation occurs when real GDP grows more rapidly than the quantity of money. D. Inflation is a tax on spending money.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 11P
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Which of the following statements about inflation is true?
Inflation is not a problem because it is just another way for the government to collect
revenue—an
alternative to the income tax or the sales tax.Inflation is a tax on holding money.
Inflation occurs when real GDP grows more rapidly than the quantity of money.
Inflation is a tax on spending money.
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