With increases in inflation demand for money that does not earn a return decreases.Carrying less cash in our pockets means higher ________.
A)shoe-leather costs
B)menu costs
C)capital gain tax bills
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

With inflation, the demand for money that does not earn a return decreases, which means people are less likely to hold cash in their pockets. This leads to higher shoe-leather costs, which refer to the cost of time and effort spent on frequent trips to the bank or ATM to withdraw cash.

With Increases in Inflation Demand for Money That Does Not