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Which of the Following Will NOT Play a Role in Eliminating

Question 32

Multiple Choice

Which of the following will NOT play a role in eliminating the shortcoming of the taxation system, particularly the fact that the tax system taxes nominal return rather than real return?


A) Eliminating taxation of interest
B) Introducing inflation-indexed bonds
C) Taxing only real interest income, not nominal interest income
D) Reducing inflation to zero

Correct Answer:

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