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.