Which of the following does the shoeleather 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

Shoeleather cost refers to the resources wasted when people reduce their money holdings to avoid the inflation tax, often leading to more frequent trips to the bank, metaphorically wearing out their shoes.

Which of the Following Does the Shoeleather Cost of Inflation