multiple choice question\ninflation that increases nominal incomes, but not real incomes, moving people into…

multiple choice question\ninflation that increases nominal incomes, but not real incomes, moving people into higher tax brackets is called \n\no shoe leather costs\no bracket creep\no noise\no capital depreciation allowance\n\nneed help? review these concept resources.\nread about the concept

multiple choice question\ninflation that increases nominal incomes, but not real incomes, moving people into higher tax brackets is called \n\no shoe leather costs\no bracket creep\no noise\no capital depreciation allowance\n\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

Bracket creep occurs when inflation - driven nominal income increases push taxpayers into higher tax brackets without an increase in real income. Shoe - leather costs are related to the cost of reducing money holdings due to inflation. Noise is not related to this inflation - tax bracket concept. Capital depreciation allowance is related to business cost accounting for asset depreciation and not to this inflation effect on tax brackets.

Answer:

B. bracket creep