Assume you buy stock and its price rises just as much as the price level.Before taxes,which of the following have you made?
A) a nominal and real gain, but you pay taxes only on the nominal gain
B) a nominal and real gain, but you pay taxes only on the real gain
C) a nominal gain, but no real gain, yet you pay taxes on the nominal gain
D) a nominal gain, but no real gain, so you pay no taxes on the nominal gain
Correct Answer:
Verified
Q105: What is inflation positively correlated with?
A) nominal
Q107: In the long run, when money is
Q112: If the money supply growth rate permanently
Q113: Suppose that velocity and output are constant,
Q121: Which of the following is an effect
Q123: Monica buys a bond for $750 and
Q124: The country of Aquilonia has a tax
Q125: Given a nominal interest rate of 12
Q126: Given a nominal interest rate of 7
Q127: Trent bought a parcel of land for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents