Question

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.

Answer 1

Answer:

Shoe leather cost

Explanation:

Shoe leather cost - it is referred to the cost of efforts that people intended to counter inflation. Shoe leather cost is considered as time cost by having less amount of cash in hand in order to tackle the inflation tax. Therefore people make regular trips to financial institutions due to holding less cash.