Multiple Choice
Suppose that, because of inflation, people in Zimbabwe go to the bank each day to withdraw their daily currency needs. This is an example of
A) Costs due to inflation induced relative price variability which misallocates resources.
B) Menu costs.
C) Shoeleather costs.
D) Costs due to inflation induced tax distortions.
E) Costs due to confusion and inconvenience.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Deflation<br>A) Increases incomes and enhances the ability
Q2: If a government supplies more money than
Q3: In the long run, inflation is caused
Q4: Which of the following statements is NOT
Q6: With the value of money on the
Q7: Which of the following costs of inflation
Q8: The velocity of money is<br>A) Highly unstable.<br>B)
Q9: If real GDP falls and the nominal
Q10: In the quantity theory of money<br>A) Prices
Q11: The quantity equation states that<br>A) Money ×