The principle that what matters to people is the real value or purchasing power of money is the
A) marginal principle.
B) principle of diminishing returns.
C) spillover principle.
D) real-nominal principle.

Question

Quizplus · Accepted Answer

The principle that what matters to people is the real value or purchasing power of money is referred to as the real-nominal principle. It implies that people are more concerned about the actual goods and services that can be purchased with a certain amount of money rather than the nominal value of money itself.

The Principle That What Matters to People Is the Real