Money illusion:
a) is the misconception that prices have changed; it occurs when the Federal Reserve reduces the money supply.
b) occurs when output rises.
c) occurs only in the long run.
d) is the misconception that one is wealthier; it occurs when the money supply grows.
Ans: d) is the misconception that one is wealthier; it occurs when the money supply grows.
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The public debt is
A) an excess of government spending over government revenues during a given time period. B) all federal government debt irrespective of who owns it. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) the total value of all outstanding federal government securities.
Select the group that best represents the basic factors of production
A) land, labor, capital, entrepreneurship B) land, labor, money, management skills C) land, natural resources, labor, capital D) land, labor, capital, technology