A Government That Generates Revenue Mostly Through an Inflation Tax

question 135

Multiple Choice

A government that generates revenue mostly through an inflation tax faces the risk of ________.

• A) hyperinflation
• B) mass tax evasion
• C) rapidly falling prices
• D) a sudden fall in revenue

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Definitions:

Affirmative Defense

A set of circumstances that indicates that a defendant should not be held liable, even if the plaintiff proves all of the facts in a complaint.

Assumption of the Risk

A legal doctrine where an individual knowingly and voluntarily assumes the risk of an activity, thereby reducing the liability of others.

Demurrer

A legal objection that an opponent's point is irrelevant or invalid, while conceding the factual basis of the point.

Special Jurisdiction

The power of a court to hear only certain kinds of cases.