money illusion

money illusion definition - business

money illusion

The tendency of people to view their income and assets in nominal terms rather than real terms. People suffering a money illusion will consider themselves better off after receiving a 4% raise, even when prices have increased by 4% or more.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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