As inflation rises,people will tend to

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As inflation rises, the value of money decreases, so people will tend to make more frequent trips to the bank to withdraw smaller amounts of cash to prevent its value from decreasing further. This increase in bank visits and cash withdrawals is known as shoeleather costs. Menu costs refer to the expenses incurred by businesses to adjust their prices to reflect inflation, while the inflation fallacy is a misconception that an increase in prices due to inflation will lead to a corresponding increase in wages and income. Redistribution costs refer to the redistribution of wealth that can occur in an inflationary environment.

As Inflation Rises,people Will Tend to