Felix 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.

Shoe-leather costs

Explanation:

Felix 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 Shoe-leather costs

A shoe-leather cost is the cost to individuals who have to take frequent visits to the bank to take out more money for goods and services in periods of high inflation. The name 'shoe-leather cost' originated from the fact that walking to the bank moreon a regular basis will wear down your shoes. Felix buying his goods and converting money to a more stable foreign currency i a sjo leather cost, he most definetly frequents the bank prevent the money in his wallet from losing value.

Answer: Shoe leather cost.

Explanation: This is an example of shoe leather cost.

Shoe leather cost can be defined as the costs in time and energy used to counteract the cost of inflation. This views stems from the notion that inflation can be managed by keeping less cash at hand.