Which of the following is an example of the "shoe-leather costs" of inflation?
A)a rise in the cost of primary raw materials, like leather for shoes
B)an artificial rise in the capital gains tax
C)the need to take more trips to the bank
D)miscalculations due to money illusion
E) All of the above

Question

Quizplus · Accepted Answer

Shoe-leather costs refer to the increased costs of time and effort to carry out transactions in an inflationary environment. Taking more trips to the bank is an example of such costs, while the other options are not directly related to shoe-leather costs.

Which of the Following Is an Example of the "Shoe-Leather