Inflation tax in economics is used for which kind of phenomenon :
Inflation tax is associated with seigniorage. Creating money gives its issuer purchasing power, while the resulting inflation reduces the real value of money held by the…
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Inflation tax in economics is used for which kind of phenomenon :
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Correct answer B
Inflation tax is associated with seigniorage. Creating money gives its issuer purchasing power, while the resulting inflation reduces the real value of money held by the public. This loss of purchasing power acts like a tax on holders of money balances.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)