Explain the costs imposed by an increase in inflation. What ...

[elizabeth18]

Explain the costs imposed by an increase in inflation.
 
  What will be an ideal response?

Question 2

In 2014, the average inflation rate in the OECD countries was
 
  A) 1.7.
  B) 2.3.
  C) 5.2.
  D) 3.8.
  E) 10.5.

[vboyd24]

Answer to Question 1

The answers to this question should include a discussion of: shoe-leather costs, tax distortions, money illusion, and inflation variability.

Answer to Question 2

A

[elizabeth18]

Thanks for the timely response, appreciate it

[juliaf]

YES! Correct, THANKS for helping me on my review