How does inflation act as a tax?
What will be an ideal response?
Rapidly printing money leads to an increase in the growth rate of money supply that exceeds growth rate of real GDP. This results in inflation in the economy. A higher inflation rate further reduces the buying power of currency. Hence, printing currency reduces the buying power of currency by reducing its value among consumers and producers, but increases the revenue of the government in the form of newly printed notes.
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A ________ is a complete plan describing how a player will act
A) strategy B) payoff C) hypothesis D) policy
Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as
A) the law of demand. B) the law of supply. C) ceteris paribus. D) equilibrium.