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.

Question

Quizplus · Accepted Answer

The inflation tax refers to the revenue a government generates by printing more money, which can lead to inflation. This process reduces the value of money held by the public, acting as a form of taxation.

The Inflation Tax Refers to