The above situation is an example of shoe leather cost of inflation.
A shoe-leather cost is what people pay when they frequently visit the bank to withdraw cash to use to pay for products in the wake of intense inflationary pressure. The term "shoe-leather cost" symbolizes all costs, including time spent, bank fees, brokerage fees and transportation costs.
High inflation discourages people from keeping large sums of cash on hand because the value of money rapidly depreciates during this time. More money is kept in banks by them. Additionally, repeated price increases force people to constantly withdraw money for transactional needs. Due to this, they frequently visit their bank to withdraw cash in order to pay for goods and services. These frequent journeys degrade their shoe leather, resulting in a 'shoe-leather cost.'
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Answer:
consumers would find it cheaper to buy gasoline
Explanation:
In the short run a tax cut or tax suspension as we have In this question is able to increase demand because it increases peoples disposable income. This tax cut of $0.4 would remove burden on gasoline consumers. By removing the tax on gasoline the price of gasoline would become lower and consumers would find it easier and cheaper to purchase
Start paying for your own bills and pay them on time, saving money helps as well. just really being responsible with your card helps your credit.
Answer:
The cost of borrowing money becomes greater.
Explanation:
To borrow money from the bond the firm Intel needs to issue bonds. Then, it needs to pay interest on these bonds. This interest is the cost of borrowing.
When there is an increase in the interest rate in the market, the firm will be required to more interest. This increases the cost of borrowing from the bond market.
The returns from the new factory may not be able to cover this increased cost of borrowing. As a result the firm will be discouraged from borrowing.
