Question

multiple select question select all that apply shoe - leather costs often refer to ________ more than one answer may be correct. distortion in tax policy a true cost of inflation economizing cash holdings redistributions of wealth

Explanation:

Shoe - leather costs are costs incurred due to inflation. People try to economize on their cash - holdings by making more frequent trips to the bank to keep their money in interest - bearing accounts. This is a real cost of inflation. It has nothing to do with tax policy distortion or wealth redistribution.

Answer:

B. a true cost of inflation
C. economizing cash holdings