Suppose that Felix gets a 1% raise this year, but prices have also risen by 1%. Felix feels richer due to his raise and attempts to change his spending habits. Felix is suffering from: O a. macroeconomics. O b. irrational exuberance. O c. inflation pricing. O d. money illusion. Suppose that prices and wages both double next year. What is true about next year compared to this year? O a. Nominal wages are higher and real wages remain constant. O b. Nominal wages are higher and real wages are lower. O c. Nominal wages increased and real wages decreased. O d. Nominal wages and real wages are both higher. Which different costs of inflation best match the scenario below? James borrowed $500,000 from the bank 10 years ago at a fixed rate of 7% per year to buy a house. In recent years, inflation has been higher than expected. O a. Menu costs. O b. Shoe-leather costs. O c. Money illusion. O d. Wealth redistribution. In 2012, Juan takes out a 30-year bank mortgage loan of $500,000 at a fixed interest rate. He buys a house with the loan. In 2014 to 2018, inflation is high. Who is hurt and helped by this inflation, ceteris paribus? O a. Juan and the bank are both hurt. O b. Juan is helped and the bank is hurt. O c. The bank is helped and Juan is hurt. O d. Juan and the bank are both helped