One Effect of Inflation Is That It Is a Tax

question 90

Multiple Choice

One effect of inflation is that it is a tax that redistributes goods and services from

• A)businesses to households.
• B)government to businesses.
• C)households and businesses to the government.
• D)government to households.
• E)investors to savers.

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Definitions:

Suffered Losses

Refers to the financial, physical, or emotional damages incurred by an individual or entity, often used in legal contexts to determine compensatory needs.

Contractual Obligations

Duties that a party is bound to perform as per the terms and conditions specified in a contract.

Ground of Intoxication

A legal justification or defense based on the claim that an individual's actions were significantly impaired due to the influence of alcohol or drugs.

Ratifying the Contract

The act of formally confirming or approving an agreement to make it officially valid.