Problemas
The increased costs of making transactions that arise from the public's efforts to avoid the inflation tax are what type of costs? A. Money neutrality B. Menu costs C. Shoe-leather costs D. Redistribution of wealth
Roztwór
Adriana
élite · Tutor durante 8 años
4.5
(286 Votos)
Respuesta
'C'
Explicación
## Step 1The problem is asking us to identify the type of costs that arise from the public's efforts to avoid the inflation tax. The options provided are: Money neutrality, Menu costs, Shoe-leather costs, and Redistribution of wealth.## Step 2Let's analyze each option:- Money neutrality refers to the idea that changes in the money supply only affect nominal variables and not real variables.- Menu costs are the costs to a firm resulting from changing its prices.- Shoe-leather costs are the costs of reducing money holdings to avoid the inflation tax.- Redistribution of wealth refers to the change in wealth among different groups in the economy.## Step 3From the above analysis, it is clear that the costs that arise from the public's efforts to avoid the inflation tax are referred to as shoe-leather costs.