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-Patrick Devlin
Financial Decisions
Choices made by individuals or businesses regarding the management of money and assets.
Money Illusion
Money illusion occurs when people think of currency in nominal, rather than real, terms, failing to account for inflation's impact on purchasing power.
Real Buying Power
The amount of goods and services that can be purchased with a unit of currency, taking into account inflation to reflect the true value over time.
Nominal Buying Power
Refers to the amount of goods and services that can be purchased with a specific amount of currency without taking inflation into account.
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