Which of the following are costs associated with inflation?

Question

Which of the following are costs associated with inflation?

I. The loss of real purchasing power due to rising prices

II. The resources used in changing prices, which are often referred to as menu costs

III. The wasted time and effort associated with people trying to reduce the amount of money they hold

IV. The misallocation of resources due to relative price variability

A. I, II, and IV only

B. II, III, and IV only

C. II and III only

D. I, II, III, and IV

Answer 1

A seems most impactful to the economy however, long term effects are D. all of the above.

Answer 2

"D" is right one - because all of listed effects have place.

Answer 3

d