Which of the Following Is an Example of Someone Who

Multiple Choice

Which of the following is an example of someone who is experiencing money illusion?

A) The CPI in an economy has decreased by 5%, but Vivian will not accept lower nominal wages because she believes this is unfair.
B) The CPI in an economy has increased by 2.3%, and Paul's nominal wage is increased by 2.3%.
C) Darren sees that prices in the economy have risen by 2% and that the nominal interest rate on his savings account rose 0.5%. So Darren knows he is experiencing a 1.5% decrease in his real interest earnings.
D) Prices have not changed in the economy, so your boss does not give you a raise.