The costs associated with people who are trying to minimize the erosive effects of inflation on the value of money are known as _____ costs.

Question

Quizplus · Accepted Answer

Shoe-leather costs refer to the increased costs of transactions caused by inflation. This term metaphorically describes the cost of the time and effort (the "wear and tear" on shoes) that people spend trying to keep their money from losing value due to inflation, such as by making more frequent trips to the bank.

The Costs Associated with People Who Are Trying to Minimize