Question 1 of 10Of the following inflation costs, which is characterized by an increase in the velocity of circulation of money? (Points : 10) shoe-leather costs tax costs uncertainty costs confusion costsQuestion 1 of 10Of the following inflation costs, which is characterized by an increase in the velocity of circulation of money? (Points : 10) shoe-leather costs tax costs uncertainty costs confusion costs Solution ANS=SHOE LEATHER COST The cost estimated in terms of time and energy, of efforts targetted to counteract the impacts of inflation. The term emerges from the idea that public will cope with inflation by keeping lower cash on hand and making more trips to the bank. During periods of inflation, interest rates generally rise , hence keeping as much money as possible in interest-bearing accounts may be a worthwhile strategy.