If inflation is making it difficult for people to estimate the true marginal benefits and true marginal costs of activities, inflation is leading to
A) confusion costs.
B) uncertainty costs.
C) tax costs.
D) shoe-leather costs.
E) increased economic growth.
Question 2
The expected future exchange rate has ________ on the supply of dollars and has ________ on the demand for dollars.
A) no effect; no effect
B) an effect; no effect
C) an effect; an effect
D) no effect; an effect
E) an effect sometimes; an effect sometimes
Cause of Inflation
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