Because the Inflation Rate Is So High Wanda Refuses to Carry

question 125

Multiple Choice

Because the inflation rate is so high Wanda refuses to carry cash.Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs.Wanda's actions are an example of the

• A) shoe-leather costs of inflation.
• B) tax costs of inflation.
• C) confusion costs of inflation.
• D) uncertainty costs of inflation.
• E) tax distorting costs of inflation.

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Definitions:

Welfare Benefits

Government-provided support in the form of financial aid or services intended to help individuals or families meet basic needs, like food, housing, and healthcare.

TANF

A governmental initiative, Temporary Assistance for Needy Families offers monetary support to qualifying families with low income.

Statistical Discrimination

The practice of making judgments about individuals based on statistical averages of the group they belong to, rather than on their own specific attributes or performance.

Individual Characteristics

Traits, attributes, or qualities that define or differentiate one person from another.