Question

select all that apply which of the following are considered true costs of inflation? noise expected redistributions of wealth unexpected redistribution of wealth shoe - leather costs meat - and - potatoes costs interference with long - term planning

Explanation:

• Noise isn't a typical cost of inflation.
• Expected wealth - redistributions are factored into economic decisions, not a true 'cost'.
• Unexpected redistributions of wealth occur due to unanticipated inflation changes and are a cost.
• Shoe - leather costs refer to the resources spent to avoid the effects of inflation (e.g., frequent trips to the bank), a real cost.
• 'Meat - and - potatoes costs' isn't a recognized inflation cost.
• Inflation can disrupt long - term planning as future values become uncertain, a cost.

Answer:

• C. unexpected redistribution of wealth
• D. shoe - leather costs
• F. interference with long - term planning