If the market prices of publicly traded stocks and bonds rise, while the productive capacity of those assets has not increased, which of the following has occurred?

Question

Quizplus · Accepted Answer

Nominal wealth has increased because the market value of the stocks and bonds has gone up, even though the actual productive capacity (real wealth) of the assets has not changed. Nominal wealth refers to the current market value of assets, which can rise due to factors like investor sentiment or market dynamics, without a corresponding increase in the physical or productive capacity of the assets.

If the Market Prices of Publicly Traded Stocks and Bonds