Question

the costs of inflation are
shoeleather costs and menu costs.
arbitrary redistributions of wealth.
increased variability of relative prices.
all of the above.

Explanation:

Shoeleather costs are the resources wasted when people try to avoid holding money during inflation. Menu costs are the costs of changing prices. Arbitrary redistributions of wealth occur as inflation affects debtors and creditors differently. Increased variability of relative prices makes it harder for consumers and producers to make economic decisions. All these are costs of inflation.

Answer:

D. All of the above