The costs associated with changing prices in times of inflation are called:
A)inflation risk.
B)price staggering.
C)transaction costs.
D)shoe-leather costs.
E)menu costs.

Question

Quizplus · Accepted Answer

The costs associated with changing prices in times of inflation are called menu costs. These are the costs that firms incur in order to adjust their prices to keep up with inflation, including the costs of printing and distributing new price lists, updating computer systems, and retraining employees.

The Costs Associated with Changing Prices in Times of Inflation