Games & Entertainment

Iii Rise
Which of the following are costs associated with inflation?

I. The loss of real purchasing power due to rising prices
II. The resources used in changing prices, which are often referred to as menu costs
III. The wasted time and effort associated with people trying to reduce the amount of money they hold
IV. The misallocation of resources due to relative price variability

D. II, III, and IV only

Although all these reasons are costs of inflation, but loss of real purchasing power should take into account opportunity costs.