The inflation tax
A)is an alternative to income taxes and government borrowing.
B)taxes most those who hold the most money.
C)is the revenue created when the government prints money.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The inflation tax refers to the reduction in the purchasing power of money held by the public when the government prints more money, leading to inflation. This acts as an alternative to other forms of taxation and affects those holding money, as it erodes the value of their holdings.

The Inflation Tax