Which of the following is correct? a. inflation encourages larger holdings of currency by the public. b. inflation encourages savings through the tax treatment on capital gains. c. inflation impedes financial markets in their role of allocating savings to alternative investments. d. inflation reduces people's real purchasing power.

answerblank(1) starts; blank(2); // cash cows;

answerindividual preferences are not revealed in the market for the good;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.