Because of money illusion,inflation usually confuses:
A) consumers.
B) workers.
C) firms.
D) consumers,workers,and firms.

Question

Quizplus · Accepted Answer

Money illusion, referring to the tendency to think of currency in nominal rather than real terms, can affect all economic players. Inflation typically causes confusion among consumers and workers, as they may not immediately recognize the erosion of their purchasing power. Firms may also be affected, as they must consider the impact of inflation on production costs and pricing decisions. Therefore, all choices are valid answers.

Because of Money Illusion,inflation Usually Confuses