People use more resources to reduce their money holdings because of high inflation.What is this an example of?
A)inflation-induced tax distortions
B)relative-price variability costs
C)shoeleather costs
D)menu costs

Question

Quizplus · Accepted Answer

This is an example of shoeleather costs, which refer to the increased costs of time and effort that people incur when they have to reduce their money holdings more frequently due to high inflation.

People Use More Resources to Reduce Their Money Holdings Because