Inflation Is Sometimes Called the Arbitrary Tax Because

question 42

Multiple Choice

Inflation is sometimes called the arbitrary tax because

• A) we never know when inflation will occur.
• B) the rate of inflation is very difficult for economists to predict.
• C) the rate of inflation is set by the government.
• D) inflation affects the prices of various commodities in unpredictable ways.
• E) its rewards and penalties are meted out with little regard for society's values or goals.

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Definitions:

Bribing

Bribing is the act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not offer.

Political Candidates

Individuals who are running for political office, seeking to be elected to represent the public in governmental bodies.

Balance of Payments

is a record of all financial transactions made between consumers, businesses, and the government in one country with those in other countries over a specific period.