The value of money or income in terms of the quantity of goods the money can buy is called its:
A) nominal value.
B) real value.
C) marginal value.
D) implicit value.

Question

Quizplus · Accepted Answer

The real value of money or income takes into account the effect of inflation or deflation on purchasing power. It is measured by the quantity of goods and services that can be purchased with a given amount of money. Nominal value refers to the face value of money or income, without considering inflation or deflation. Marginal value refers to the additional utility gained from consuming one more unit of a good or service. Implicit value refers to the value of a good or service that is not directly paid for, such as the value of clean air or public parks.

The Value of Money or Income in Terms of the Quantity