Unit-of-account costs refer to the:
A) increase in prices during inflation.
B) decrease in the value of money during inflation.
C) loss of the reliability of money as a relative unit of measurement.
D) increased cost of servicing bank accounts during inflation.

Question

Quizplus · Accepted Answer

Unit-of-account costs refer to the loss of the reliability of money as a relative unit of measurement. During inflation, the prices of goods and services increase, making it difficult to measure the value of money accurately. This loss of reliability in measuring the value of money is known as unit-of-account costs.

Unit-Of-Account Costs Refer to The