Governments may prefer an inflation tax to some other type of tax because the inflation tax
A)is easier to impose.
B)reduces inflation.
C)falls mainly on high-income individuals.
D)reduces the real cost of government expenditure.

Question

Quizplus · Accepted Answer

Inflation tax is easier to impose because it does not require legislative approval or direct collection mechanisms like other taxes.

Governments May Prefer an Inflation Tax to Some Other Type