Menu costs refer to:
A. the time, money, and effort one has to spend managing cash in the face of inflation.
B. labor costs associated with inflation.
C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed.
D. the money, time, and opportunity used to change prices to keep pace with inflation.
Answer: D
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When the oil-producing countries of the Middle East meet to set prices and output levels, this is an example of
a. monopoly behavior b. profit sharing c. market distribution d. explicit collusion e. tacit collusion
Which of the following is not a central bank?
a. The Bank of England b. The Bank of Japan c. The Bank of America d. The Federal Reserve
A municipal bond is
a. issued by the federal government.
b. issued by state and local governments.
c. issued by corporations.
d. issued by households.
In the basic Keynesian model, an increase in transfer payments:
A. increases short-run equilibrium output. B. increases potential output. C. reduces short-run equilibrium output. D. reduces potential output.