Question

Nick manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.

Answer 1

Shoe leather cost

Step-by-step explanation:

Inflation is a persistent rise in general price levels.

shoe leather cost is the cost incurred by people that do not want to hold cash in a period of high inflation so as to avoid paying inflation tax.

Nick's shoe leather costs includes buying goods immediately he is paid and converting the money he cant spend into foreign currency