Question

If your nominal wage rises but you think that it automatically means your real wage rose, then:a.you are suffering from money illusion.b.you are experiencing the substitution effect.c.you are suffering from the heterogeneity illusion effect.d.you are experiencing the income effect.e.you are suffering from the price confusion problem

Answer 1

Answer:

If your nominal wage rises but you think that it automatically means your real wage rose, then you are suffering from money illusion.

Explanation:

In money illusion, one thinks money is nominal rather than real.