Which Statement Best Explains Why Governments May Prefer an Inflation

question 107

Multiple Choice

Which statement best explains why governments may prefer an inflation tax to some other kind of tax?

• A) The inflation tax is easier to impose.
• B) The inflation tax reduces inflation.
• C) The inflation tax falls mainly on high-income individuals.
• D) The inflation tax reduces the real cost of government expenditure.

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Definitions:

L Data

Life record data in personality psychology, referring to objective data collected from a person's life such as school grades or employment history.

B Data

Observational data about a person's behavior that is collected directly from the environment, as opposed to self-reported measures or tests.

I Data

I Data, in the context of psychological research, typically refers to informant data, which is information reported by someone familiar with the individual being assessed, used to gain insights into the individual's behavior or traits.

Thematic Apperception Test

A projective psychological test in which respondents reveal their underlying motives, feelings, and personality traits through the stories they make up about ambiguous pictures.