Which of the following inflation costs matter even if actual inflation and expected inflation are the same?

Question

Quizplus · Accepted Answer

All three costs (menu costs, inflation tax, and shoe leather costs) are relevant even if actual and expected inflation rates are the same. 
- Menu costs: refer to the cost that firms face in changing their prices in response to inflation, regardless of whether inflation is higher or lower than expected. 
- Inflation tax: refers to the reduction in purchasing power of money held by individuals, which occurs regardless of whether inflation is higher or lower than expected. 
- Shoe leather costs: refer to the costs associated with increased frequency of trips to the bank to change money, which occur regardless of whether inflation is higher or lower than expected.

Which of the Following Inflation Costs Matter Even If Actual