Shoeleather costs arise when higher inflation rates induce people to

Question

a. spend less time looking for bargains.
b. spend more time looking for bargains.
c. hold more money.
d. hold less money.

Answer 1

Shoeleather costs arise when higher inflation rates induce people to d. hold less money.

This refers to the idea that when inflation is high, people try to minimize their cash holdings to avoid the erosion of value due to inflation, leading to more frequent trips to the bank or other financial institutions, hence the term "shoeleather" costs associated with the wear and tear on shoes from this increased activity.