The Inflation Tax Is

question 53

Multiple Choice

The inflation tax is

• A) a tax on nominal goods.
• B) the sales tax.
• C) a tax introduced in the early 1980s to fight inflation.
• D) the revenue from seigniorage.
• E) the revenue from open market purchases.

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Definitions:

State Unemployment Tax

A tax imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.

Payroll Deductions

Monies withheld from an employee’s paycheck by the employer for taxes, insurance premiums, retirement fund contributions, and other purposes.

Weekly Payroll

The total amount of money a company pays to its employees on a weekly basis.

Warranty Period

The length of time during which a manufacturer promises to repair or replace defective products at no charge to the customer.