Question

Alyssa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in her cash register from falling too quickly, Alyssa sends an employee to the bank four times per day to make deposits in a interest-bearing account that protects the store's revenues from the effects of inflation. This is an example of the____of inflation.A. Menu CostsB. Unit of account costsC. Shoesleather costs

Answer 1

Answer:

It is an example of the shoes leather costs.

Explanation:

Shoe leather cost is the cost which involve the time as well as the efforts which people spend on trying to counter-act the inflation effects like holding less amount of cash and make additional trips to the bank.

In this scenario, Alyssa in order to protect herself from the effect of the inflation, she sends employee to bank for depositing the money into the bank four times a day. Therefore, it is an example of Shoe leather cost