Increases in the Rate of Inflation Will Induce Consumers to Make

Multiple Choice

Increases in the rate of inflation will induce consumers to make more frequent trips to the bank to withdraw cash whenever the cost of the extra trips is __________ the benefit of holding less cash subject to purchasing power losses from inflation.

A) greater than
B) less than
C) equal to
D) greater than or less than
E) twice the consumer price index times