Who gave the concept of ‘money illusion’ for the first time?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Irving Fisher.
- The concept of "money illusion" was first introduced by the economist Irving Fisher in the early 20th century.
- Fisher discussed the idea in his book "The Money Illusion," published in 1928.
- He described it as the tendency for people to mistakenly interpret nominal changes in wages or prices as real changes, without considering changes in purchasing power due to inflation or deflation.