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Costs of Inflation: Shoe-leather Costs and Menu Costs
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Problem 10
Costs of Inflation: Shoe-leather Costs and Menu Costs
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12. Unemployment and Inflation / Costs of Inflation: Shoe-leather Costs and Menu Costs / Problem 4
Problem 4
How does inflation reduce the convenience of holding cash?
A
Inflation has no impact on the convenience of holding cash.
B
Inflation decreases the value of cash, requiring more frequent bank transactions.
C
Inflation increases the value of cash, making it more convenient to hold.
D
Inflation stabilizes the value of cash, reducing the need for transactions.
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