Author Question: Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she ... (Read 76 times)

jman1234 · **on:** Jun 29, 2018

Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the

A) tax distorting costs of inflation.
B) uncertainty costs of inflation.
C) tax costs of inflation.
D) shoe-leather costs of inflation.
E) confusion costs of inflation.

Question 2

If the expected future U.S. exchange rate falls, then in the foreign exchange market the current

A) supply of dollars decreases.
B) demand for dollars increases.
C) quantity supplied of dollars decreases.
D) supply of dollars increases.
E) quantity supplied of dollars increases.