The costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation are called
A. transactions costs.
B. menu costs.
C. imperfect competition costs.
D. shoe leather costs.
Answer: D
You might also like to view...
In the figure above, governments
A) collect taxes. B) coordinate economic activities of households and firms. C) hire factors of production. D) own factors of production. E) sell goods and services to household.
An increase in autonomous consumption ________
A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above
Refer to the above figure. An excise tax of $0.50 was imposed on this good. From the figure we can see that the
A) producer will bear most of the tax. B) consumer will bear most of the tax. C) consumer and producer will share the tax. D) amount of the tax collected is less than $0.50.
Something that provides utility is called a
A) good. B) bad. C) want. D) need. E) a and d