If inflation is making it difficult for people to estimate the true marginal benefits and true marginal costs of activities, inflation is leading to
A) tax costs.
B) shoe-leather costs.
C) confusion costs.
D) uncertainty costs.
E) increased economic growth.

Question

Quizplus · Accepted Answer

Inflation causing difficulty in estimating true marginal benefits and costs leads to confusion costs, as it creates uncertainty in economic decision-making.

If Inflation Is Making It Difficult for People to Estimate