The monetary base and the money supply are expected to grow at a constant rate of 20% per year. inflation and expected inflation are 20% per year. suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. what is the cost to the public of the inflation tax?

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u. s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a: