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

Question

Quizplus · Accepted Answer

The real-nominal principle states that what matters to people is the real value or purchasing power of money, rather than its nominal value or face value. This principle is important in understanding how inflation affects individuals and the economy as a whole.

The Principle That What Matters to People Is the Real