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IBPS Clerk Mains 2017 Paper
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Question : 119 of 178
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_____________. The concept, credited to British economist John Maynard Keynes, has been heavily criticized for its assumption that people are naïve. The theory of rational expectations, which among other things states that people learn from experience and can reset their earlier beliefs, was a response to the idea of money illusion.
The people care about the nominal value money rather than its real value. Workers, for instance, would be impressed if their wages double in a year if real money drop more than half
The notion that people care about drop by more than half during the same period. According to this idea,workers, for instance, would be impressed if their wages gets double.
The notion that people care more about the nominal value, would be impressed if their wages double than its real value. Real values of their money were to drop by more than half during the same period.
The notion that people care more about the nominalvalue of money rather than its real value. Accordingto this idea, workers, for instance, would be impressedif their wages double in a year even if the real value oftheir money were to drop by more than half during thesame period.
The notion were to drop by more than half during the same period. According to this idea, workers, for instance, would be impressed if its wages double
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