All of the following are costs of expected inflation except
A) seigniorage.
B) menu costs.
C) velocity costs.
D) tax distortions.
C
You might also like to view...
The biggest flaw in the logic of the labor argument is the failure to consider
A) the needs of developing countries. B) the impact of tariffs on inflation. C) the differences in national productivity levels. D) the strategy of multinational businesses. E) the impact on employment levels.
In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A. Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. B. The wage rate will drop, more workers will be hired, and the unemployment rate falls. C. The workers will go on strike to demand that more jobs be created. D. The government will step in and order firms to hire more workers.
Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF2?
A. More workers B. Better sewing technology C. Better printing press technology D. A desire to read more books
Refer to the graph below. One U.S. dollar will purchase how many Japanese yen?
Assume that Japan and the United States are engaged in a system of flexible exchange rates.
A. 80
B. 120
C. 125
D. 140