Question

Which of the following is NOT an effect of expected inflation? Group of answer choices leads to taxing of nominal capital gains that are not real. causes lower real wages. increases menu costs. leads to shoeleather costs.

Answer 1

Answer: Group of answer choices leads to taxing of nominal capital gains that are not real.

Explanation: The effects of inflation results increase in prices of commodities or things that use on a daily basis.The effects causes negative impacts on peoples lives by increasing the cost of living in communities.This in turn causes a major disorientation in peoples lifestyles. inflation causes a big gap in poor and rich people to be extremely high.