High Rates of Inflation Often Result in People Spending Inordinate

question 141

Multiple Choice

High rates of inflation often result in people spending inordinate amounts of time trying to make transactions and finding ways to keep the real value of their money from decreasing.This example illustrates _____ costs.

• A) shoe-leather
• B) menu
• C) efficiency-wage
• D) unit-of-account

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Definitions:

Ledger

A book or collection of financial accounts in which transactions are recorded.

Account Balance

The amount of money in a financial repository, such as a bank account, at any given time.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.

Ledger

A comprehensive collection of all accounts and their transactions used in the accounting system of a business.