Question

The shoeleather cost of inflation refers to a:

a.the increased cost to the government of printing more money.
b. the waste of resources used to maintain lower money holdings.
c. the redistributional effects of unexpected inflation.
d. the time spent searching for low prices when inflation rises.

Answer 1

Answer:

. the waste of resources used to maintain lower money holdings. 

Explanation:

The shoeleather cost of inflation refers to the cost of trying to negate the effects of inflation by trying to economise their money holdings.

Inflation is a persistent rise in general price levels.

I hope my answer helps you

Answer 2

Answer:

B) the waste of resources used to maintain lower money holdings

Explanation:

Shoeleather cost is the cost of time and effort that individuals spend trying to counteract the effects of inflation, like being in possession of less cash, investing in varying currencies with lower levels of inflation, and making additional trips to the bank.