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As the Rate of Inflation Increases, the Increased Cost to a Consumer

Question 97

Multiple Choice

As the rate of inflation increases, the increased cost to a consumer of more frequent trips to the bank to make cash withdrawals represents an increase in the:


A) shoe leather costs of inflation.
B) erosion of the purchasing power of cash.
C) tax distortion generated by inflation.
D) "noise" in the price system.

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