The inflation tax is often used as a significant source of revenue in developing countries where the

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The inflation tax is often used as a significant source of revenue in developing countries where the tax collection and reporting system is not well developed and tax evasion may be high.

a. Use the numbers in the accompanying table to calculate the inflation tax in the United States and India (Rp = rupees). image text in transcribed

b. How large is the inflation tax for the two countries when calculated as a percentage of government receipts?

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Macroeconomics

ISBN: 9781464110375

4th Edition

Authors: Paul Krugman, Robin Wells

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Question Posted: Feb 28, 2024 04:01 AM

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The inflation tax is often used as a significant source of revenue in developing countries where the

Question:

Inflation in 2013 India 9.48% United States 1.46% Money supply in 2013 (billions) Rp19,118 $2,832 Central government receipts in 2013 (billions) Rp10,726 $3,113

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lets calculate the inflation tax for India and the United States in 2a and then dete...View the full answer

Macroeconomics

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