As the Rate of Inflation Increases, the Increased Cost to a Consumer

question 97

Multiple Choice

As the rate of inflation increases, the increased cost to a consumer of more frequent trips to the bank to make cash withdrawals represents an increase in the:

• A)shoe leather costs of inflation.
• B)erosion of the purchasing power of cash.
• C)tax distortion generated by inflation.
• D)"noise" in the price system.

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Definitions:

Sympathetic nervous system

Part of the autonomic nervous system that activates the fight or flight response during perceived threats.

Exhaustion stage

The final phase in the general adaptation syndrome, marked by the body's inability to continue adaptation to stress, leading to potential burnout or health issues.

Maladaptive

Behaviors or thought patterns that inhibit an individual's ability to adjust healthily to particular situations.

Right from wrong

The moral ability or capacity to distinguish ethical actions from unethical ones.