People Go to the Bank More Frequently to Reduce Currency

question 91

Multiple Choice

People go to the bank more frequently to reduce currency holdings when inflation is high.The sacrifice of time and convenience that is involved in doing that is referred to as

• A)inflation-induced tax distortion.
• B)relative-price-variability cost.
• C)shoeleather cost.
• D)menu cost.

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Definitions:

Provisions

Supplies of food, drink, or equipment, especially for a journey, military campaign, or period of scarcity.

Lewis and Clark Expedition

The early 19th-century expedition commissioned by President Thomas Jefferson to explore the newly acquired western territory of the United States, led by Meriwether Lewis and William Clark.

Gibbons V. Ogden

A landmark decision by the U.S. Supreme Court in 1824 that held that the power to regulate interstate commerce was granted to Congress by the Commerce Clause of the Constitution.