Question 1
Inflation is problematic because it ______.
◦ forces people to spend more money to buy the same product
◦ leads to too great a supply of goods
◦ leads to too great a demand for goods
◦ keeps people from looking for work
Question 2
One benefit of a consumption tax is that it could ______.
◦ simplify the tax code
◦ raise demand for products
◦ encourage spending
◦ lead to unbalanced federal budgets