Unit-of-account costs of inflation are the:
A) costs associated with money not being a reliable unit of measurement.
B) costs of transactions associated with avoiding the inflation tax.
C) costs associated with businesses changing prices.
D) transfers the government gets from printing money.

Question

Quizplus · Accepted Answer

Unit-of-account costs of inflation refer to the costs associated with money not being a reliable unit of measurement. Inflation distorts the value of money over time, making it more difficult for individuals and businesses to accurately measure and compare value. This can result in increased uncertainty and difficulty in financial planning and decision-making.

Unit-Of-Account Costs of Inflation Are The