Compared to Periods of Lower Rates of Inflation, During a Hyperinflation

question 60

Multiple Choice

Compared to periods of lower rates of inflation, during a hyperinflation all of the following occur except:

• A) shoeleather costs increase.
• B) menu costs become larger.
• C) relative prices do a better job of reflecting true scarcity.
• D) tax distortions increase.

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Definitions:

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