Products sold by monopolistically competitive firms are perfect substitutes of each other

The costs of inflation to households and firms due to holding less money and making more frequent trips to the bank are known as

A) seigniorage. B) menu costs. C) velocity costs. D) shoe-leather costs.

The rationing function of prices refers to

A) the situation when government must intervene in a market when there is a large shortage or surplus. B) the synchronization of decisions by buyers and sellers that leads to an equilibrium. C) the synchronization of decisions by buyers and sellers through the direction of government agencies. D) the situation when only the rich get the goods they want.