The inflation tax refers to a. the revenue a government creates by printing money. b. higher inflation which requires more frequent price changes. c. the idea that, other things the same, an increase in the tax rate raises the inflation rate. d. taxes being indexed for inflation.

An unanticipated increase in inflation can a.   reduce the real interest rate earned by lenders.   b. make creditors better off. c. make debtors worse off. d.   make workers who signed contracts at the beginning of the year better off.   e. lead to a higher purchasing power for the currency.

Inflation   a. leads people to use more resources to reduce money holdings. There is no way it can make labor markets work more efficiently. b. leads people to use more resources to reduce money holdings. However, it can make labor markets work more efficiently.   c. leads people to use fewer resources to reduce money holdings. There is no way it can make labor markets work more efficiently   d. leads people to use fewer resources to reduce money holdings. However, it can make labor markets work more efficiently.

List, and describe, 4 problems that inflation creates. Look at each of these as a separate response. Use examples in description.