Tax Distortion Refers to the Cost of Inflation That Comes

question 83

Multiple Choice

Tax distortion refers to the cost of inflation that comes from:

• A) the money, time, and opportunity used to change prices to keep pace with inflation.
• B) the time, money, and effort one has to spend managing cash in the face of inflation.
• C) the higher taxes one must pay when earning a greater dollar amount, even though real purchasing power hasn't changed.
• D) the labor costs associated with inflation.

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