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    Principles of Macroeconomics Study Set 8
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    Exam 17: Money Growth and Inflation: The Costs of Inflation
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    The Idea That Inflation by Itself Reduces People's Purchasing Power
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The Idea That Inflation by Itself Reduces People's Purchasing Power

Question 70

Question 70

Multiple Choice

The idea that inflation by itself reduces people's purchasing power is called


A) the inflation tax.
B) menu costs.
C) the inflation fallacy.
D) shoeleather costs.

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