Which of the Following Costs of Inflation Does Not Occur

question 7

Multiple Choice

Which of the following costs of inflation does not occur when inflation is constant and predictable?

• A) Costs due to inflation induced tax distortions.
• B) Arbitrary redistributions of wealth.
• C) Shoeleather costs.
• D) Menu costs.
• E) Costs due to confusion and inconvenience.

---

Definitions:

Campaign Finance

The fundraising and spending of money by candidates and political parties for electoral campaigns, regulated by laws and ethics to ensure fairness and transparency.

Incumbents

Current holders of a political office or position.

Open-seat Contests

Electoral races without an incumbent, typically characterized by more candidates and often more competitive than races with incumbents.

Campaign Reform

Efforts and policies aimed at improving the fairness, transparency, and accountability of political campaigning and financing.