What is the best definition of money illusion
A) The tendency to focus on avoiding short-term losses, even at the expense of long-term gains.
B) The tendency to avoid making a decision because you fear that the decision would have been less than optimal.
C) The tendency to consider something that you own to be worth more than it would be if you did not own it.
D) Confusion between real buying power and nominal buying power.
E) The reliance on instinct instead of analysis in making decisions.

Question

Quizplus · Accepted Answer

Money illusion refers to the confusion or misunderstanding between real and nominal value, where individuals fail to account for inflation or deflation and assess their buying power based on nominal rather than real terms.

What Is the Best Definition of Money Illusion