When Inflation Functions as a Type of Tax,which of the Following

question 72

Multiple Choice

When inflation functions as a type of tax,which of the following groups of people will be hurt the most?

• A) people or businesses with deposits in a savings account that pays an interest rate higher than the rate of inflation
• B) people or businesses that invest in gold,silver,platinum,or other metals
• C) people who hold currency and coins in their wallet,purse,or at home
• D) people who invest their money in mutual funds

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Definitions:

Developing Countries

Nations with a lower level of industrial base, lower Human Development Index (HDI) than developed countries, and often face economic challenges.

Depression

A common and serious mood disorder that affects how you feel, think, and handle daily activities.

Obsessive-Compulsive Disorder

A mental disorder characterized by obsessions (intrusive thoughts) and compulsions (repeated behaviors) that aims to relieve anxiety.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).