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Solved: An inflation tax is a. imposed by governments to offset price increases. b. paid
Chapter 0, Problem 4(choose chapter or problem)
An inflation tax is a. imposed by governments to offset price increases. b. paid directly as a percentage of the sale price on purchases. c. the result of a decrease in the value of money held by the public. d. generally levied by states rather than the federal government. e. higher during periods of low inflation.
Questions & Answers
QUESTION:
An inflation tax is a. imposed by governments to offset price increases. b. paid directly as a percentage of the sale price on purchases. c. the result of a decrease in the value of money held by the public. d. generally levied by states rather than the federal government. e. higher during periods of low inflation.
ANSWER:Step 1 of 2
Inflation acts as distortion or a ray of positivity in purchasing capacities of an individual. Individuals face the primary impact on their disposable incomes on account of changing inflation.