"Inflation Tax" Means That

question 90

Multiple Choice

"Inflation tax" means that:

• A) as the price level rises, taxpayers are pushed into higher tax brackets.
• B) as the price level rises, the real value of money held by the public decreases.
• C) as taxes increase, the rate of inflation also increases.
• D) in a hyperinflation, the chief source of tax revenue is often the printing of money.

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Definitions:

Psychological Disturbances

Disorders of thought, mood, or behavior that may impair the ability of an individual to function in ordinary life.

Unconscious Level

Mental processes and contents that occur without conscious awareness, influencing thoughts, feelings, and behaviors.

Unconscious Motivations

Drives or desires that influence a person's actions or feelings without their awareness.

Overt Actions

Actions that are open, observable, and measurable by others, as opposed to internal or covert processes.