Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 1 - Ten Principles of Economics - Problems and Applications - Page 18: 12

Answer

Anyone using or holding money is being taxed, albeit indirectly, because inflation depreciates the value of their money.

Work Step by Step

When the government prints more money, this leads to inflation or a drop in overall prices. This negatively affects people because they lose purchasing power.
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