Menu Costs of Inflation Are Costs Arising from

question 85

Multiple Choice

Menu costs of inflation are costs arising from

• A)the failure to fully index the tax system for inflation.
• B)attempts by households and firms to avoid paying an inflation tax on money balances.
• C)the need for firms to change prices during times of inflation.
• D)high nominal interest rates.

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Definitions:

Reagents

Chemical substances used in reactions to bring about and probe chemical changes, often to transform reactants into products.

2,2-dimethyloxirane

A type of oxirane with two methyl groups attached to the same carbon atom, used in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent, antiseptic, and intoxicant.

Trace of HCl

A very small amount of Hydrochloric acid, often used in chemical reactions.