Which of the following is an example of the menu costs of inflation?
a. Tito's Restaurant has to print new menus to update its prices compared to other prices in the economy
b. Beto sells stocks and earns a real capital gain of $50, but is taxed for the nominal capital gain of $75
c. During Bolivia's hyperinflation, workers rushed to immediately convert their wages from pesos to black-market dollars
d. The after-tax real interest rate is lower when inflation is higher
a
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If your planned consumption expenditure is $600 per month and your disposable income is $500 per month, your
A) induced consumption is $600. B) saving is $100 per month. C) dissaving is $100 per month. D) autonomous consumption is -$100 per month. E) autonomous consumption must be zero per month.
A point or combination that is on the production possibilities curve is:
A. Attainable and resources are fully employed B. Attainable, but some resources are unemployed C. Unattainable, but some resources are unemployed D. Attainable only if we get additional resources