What does the shoe leather cost of inflation refer to?
A) the fall in real income associated with inflation
B) the time spent searching for low prices when inflation rises
C) the waste of resources used to maintain lower money holdings
D) the increased cost to the government of printing more money

Question

Quizplus · Accepted Answer

Shoe leather costs refer to the increased costs and effort of managing cash holdings and making more frequent bank transactions to avoid holding money that is losing value due to inflation.

What Does the Shoe Leather Cost of Inflation Refer To