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    Modern Principles Macroeconomics
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    Exam 12: Inflation and the Quantity Theory of Money
  5. Question
    Mistaking Changes in Nominal Prices for Changes in Real Prices
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Mistaking Changes in Nominal Prices for Changes in Real Prices

Question 85

Question 85

Multiple Choice

Mistaking changes in nominal prices for changes in real prices is called a:


A) nominal illusion.
B) real illusion.
C) price illusion.
D) money illusion.

Correct Answer:

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