Money illusion occurs
A) at a magic show.
B) when money disappears.
C) when we disregard inflation adjustments for dollar values.
D) when prices decrease.

Name: Money illusion occurs A) at a magic show. B) when money disappears. C) when we disregard inflation adjustments for dollar values. D) when prices decrease.
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Question

Quizplus · Accepted Answer

Money illusion is the mistake that we make when we compare dollar amounts in different periods without adjusting for inflation.

Money Illusion Occurs