The "true" costs of inflation to an economy include all of the following EXCEPT:
A) shoe-leather costs.
B) higher relative prices.
C) noise in the price system.
D) unexpected redistribution of wealth.

Question

Quizplus · Accepted Answer

Higher relative prices are not a direct cost of inflation; they are a result of changes in supply and demand. The true costs of inflation include shoe-leather costs, noise in the price system, and unexpected redistribution of wealth.

The "True" Costs of Inflation to an Economy Include All