During the revolutionary war, the american colonies could not raise enough tax revenue to fully fund the war effort; to make up the difference, the colonies decided to print more money. printing money to cover expenditures is sometimes referred to as an "inflation tax." who do you think is being "taxed" when more money is printed?

Question

Amelie

Business

18 January, 14:33

During the revolutionary war, the american colonies could not raise enough tax revenue to fully fund the war effort; to make up the difference, the colonies decided to print more money. printing money to cover expenditures is sometimes referred to as an "inflation tax." who do you think is being "taxed" when more money is printed?

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Jaeden Frye · Answer 1

I guess the correct answer is Anyone who is holding money.

When the government prints money, it imposes a tax on anyone who is holding money. This is because printing money decreases the value of money by causing inflation.

Inflation is an increase in the overall level of prices in the economy.