When the rate of inflation is high,people usually transfer money from interest-bearing accounts into chequing accounts more often than when inflation is low.This is an example of a menu cost.

Question

Quizplus · Accepted Answer

This is not an example of a menu cost. A menu cost is the cost associated with changing prices. Transferring money from interest-bearing accounts to checking accounts may be a response to high inflation, but it is not directly related to changing prices.

When the Rate of Inflation Is High,people Usually Transfer Money