Unit-Of-Account Costs Refer to the Problem Associated with High Inflation

question 323

Multiple Choice

Unit-of-account costs refer to the problem associated with high inflation rates that:

• A)cause people to expend extra effort to reduce their holdings of money.
• B)result in increased costs associated with necessary changes in the list price of items.
• C)makes money a less reliable unit of measurement.
• D)decrease the costs associated with holding less money.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries.

Restrictions

Limitations or conditions placed on activities, transactions, or behaviors to regulate or control their occurrence.

Tariff

A tax imposed by a government on goods and services imported from other countries.