One advantage of using an inflation tax over other methods of tax collection is that:
A) inflation tax only affects individuals with a high income.
B) people who evade other taxes also feel the burden of an inflation tax.
C) the revenue from inflation tax is extremely high.
D) the collection of inflation tax is more organized.
Question 2
The smallest single component of M1 is
A) other checkable deposits. B) traveler's checks.
C) savings account balances. D) demand deposits.
