Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the
A)tax distorting costs of inflation.
B)uncertainty costs of inflation.
C)shoe-leather costs of inflation.
D)tax costs of inflation.
E)confusion costs of inflation.

Question

Quizplus · Accepted Answer

Wanda's actions are an example of shoe-leather costs of inflation, which refer to the increased inconvenience and effort people expend to avoid holding cash during high inflation periods.

Because the Inflation Rate Is So High Wanda Refuses to Carry