Which of the following is NOT a cost of anticipated inflation but arises only if inflation is unanticipated?

Question

Quizplus · Accepted Answer

The costs associated with anticipated inflation, such as the interaction with the tax system (A), the implicit tax on holding money (B), and menu costs (C), are well-documented and can occur whether inflation is anticipated or not. However, higher inflation leading to greater uncertainty about the future inflation rate (D) is a cost that arises specifically from unanticipated inflation, as it is the unpredictability of inflation that causes this uncertainty.

Which of the Following Is NOT a Cost of Anticipated