If an economy always has inflation of 10 percent per year, which of the following costs of
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If an economy always has inflation of 10 percent per year, which of the following costs of inflation will it NOT suffer?
a. shoeleather costs from reduced holdings of money
b. menu costs from more frequent price adjustment
c. distortions from the taxation of nominal capital gains
d. arbitrary redistributions between debtors and creditors
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c distortions from the taxation of nominal capital gain...View the full answer
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