Check Your Understanding

1. Question

   The widespread use of technology has revolutionized the banking industry, making it much easier for customers to access and manage their money. Does this mean that the shoe-leather costs of inflation are higher or lower than they used to be? Explain.

2. Question

   Most people in the United States have grown accustomed to a modest inflation rate of around 2–3%. Who would gain and who would lose if inflation came to a complete stop for several years? Explain.