Business, 18.02.2021 21:20 ecolifesfsu1263

Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost. 1. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
2. A jeweler observes the price of gold riseof donuts and wonders if there is a shortage of gold.
3. Jim is reluctant to sell his stocks at the end of the year.
4. Kallie is takin more trips to ATM now tha the past.
5. Carson is angry because the price od donuts increased from $1 to $2.
6. John thinks his new salary in NYC will increase his standard of living.
7. Your grandmother's savings account pays 2% interest, but inflation is 5%.
A. Shoe-leather costs
B. Money illusion
C. Menu costs
D. Wealth redistribut'n
E. Price confusion

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Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth...

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