Which of the following is an example of the "shoe- leather costs" of inflation?
A) An artificial rise in the capital gains tax.
B) The need to take more trips to the bank.
C) A rise in the cost of primary raw materials, like leather for shoes.
D) Miscalculations due to money illusion.
E) The increase in bank transactions fees.

Question

Quizplus · Accepted Answer

Shoe-leather costs of inflation refer to the increased spending on time and effort to mitigate the effects of inflation. The need to take more trips to the bank to withdraw smaller amounts of money due to inflation is a clear example of shoe-leather costs.

Which of the Following Is an Example of the "Shoe-