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.

---

Definitions:

Aqueous Solution

A solution in which the solvent is water, commonly used in a wide range of chemical and biological processes.

Solute

A substance that is dissolved in another substance (solvent), forming a solution, which can be a solid, liquid, or gas.

Solvent-water

A substance, in which water acts as the dissolving agent or medium, primarily for solutes.

Semipermeable Membrane

A type of barrier that allows some particles to pass through while preventing others, often used in the context of biological membranes or filtration systems.