When People Use More Resources to Reduce Their Money Holdings

question 184

Multiple Choice

When people use more resources to reduce their money holdings because of high inflation, this an example of which of the following?

• A)inflation-induced tax distortions
• B)relative-price variability costs
• C)shoeleather costs
• D)menu costs

---

Definitions:

Limited Partnership

A partnership arrangement with at least one general partner who manages the business and is liable for its debts, and one or more limited partners with liability restricted to their investment.

Breach

The violation or non-fulfillment of a legal agreement or obligation.

Warranty

A promise, typically made by a seller to a buyer, regarding the condition or quality of a product.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.