1. Menu costs arise from the way inflation:
a. changes interest rates
b. decreases real income
c. reduces productivity
d. requires the regular updating of prices
2. Unit-of-account costs arise from the way inflation makes...
a. people want to hold less money
b. money a less reliable source of measurement
c. interest rates increase
d. money becomes less of a store of value
3. Shoe-leather costs arise from the way inflation...
a. causes interest rates to increase
b. results in a decrease in real incomes
c. makes financial planning increasingly difficult
d. results in additional transaction costs