Ask Question
BusinessBusiness
16 August, 05:17

Shoeleather cost refers to:

a. resources used to maintain lower money holdings when inflation is high.

b. the distortion in resource allocation created by distortions in relative prices due to inflation.

c. the tendency to expend more effort searching for the lowest price when inflation is high.

d. the cost of more frequent price changes induced by higher inflation.

+4
Answers (1)
  1. 16 August, 06:37
    0
    Answer: Option a

    Explanation: In simple words, the value of effort and time (or economic cost of effort and time) which individuals spend by keeping less money to offset the inflation tax they pay on cash holdings whenever higher inflation occurs is called shoe leather cost.

    Increased cost of shoe-leather is one of the inflationary impacts. In a time of high inflation, individuals are discouraged from keeping large sums of money because their worth is rapidly deteriorating compared to the economy's increasing prices.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Shoeleather cost refers to: a. resources used to maintain lower money holdings when inflation is high. b. the distortion in resource ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Currently, all the national central banks in the Eurosystem are involved with the implementation of monetary policy.
Answers (1)
What is the purpose of a production possibilities graph? A. to keep an economy from having nonproductive workers B. to make it possible to increase an economy's output C. to show alternative ways to use an economy's resources D.
Answers (2)
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent thereafter.
Answers (1)
What is an incentive for a person to contribute to an IDA? It earns the highest interest rates available at a bank. It is good for the government. An organization matches the amount deposited. The interest on the account is not taxed.
Answers (1)
A firm that has a database containing consumer purchasing histories that uses the information to create market segments is using which type of segmentation? Group of answer choices 1. Psychographic 2. Demographic 3. Benefit4. Usage
Answers (1)
New Questions in Business
On March 1, 2017, Carla Vista Co. acquired real estate, on which it planned to construct a small office building, by paying $84,500 in cash.
Answers (1)
Tools can be used safely for jobs that they were not designed to do. True or False
Answers (2)
Consider the relative liquidity of the following assets: Assets 1. A share in a publicly traded company 2. The funds in a savings account 3. A $10 bill 4. Your car Select the assets in order of their liquidity, from most liquid to least liquid.
Answers (2)
t is easiest to identify the company that functions as the strategic center firm in: a. horizontal complementary strategic alliances. b. vertical complementary strategic alliances. c. corporate-level cooperative partnerships. d.
Answers (1)
Marigold Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible.
Answers (2)
Home » Business » Shoeleather cost refers to: a. resources used to maintain lower money holdings when inflation is high. b. the distortion in resource allocation created by distortions in relative prices due to inflation. c.
Sign Up Forgot Password?