Which of the following statements is TRUE about the relationship between a nominal quantity and a real quantity?
A) A real quantity indicates the amount of money received,while a nominal quantity indicates the real quantity's purchasing power.
B) A nominal quantity is measured in current dollar values,but a real quantity is measured in constant dollar values.
C) A nominal quantity is adjusted for inflation;a real quantity is not.
D) A real quantity minus a nominal quantity equals purchasing power.
E) There is no difference;nominal quantity and real quantity are two different terms for the purchasing power of money.
Correct Answer:
Verified
Q90: A recent report indicated that the average
Q91: Suppose that Canada's official consumer price index
Q92: The process of converting current dollar values
Q93: To ensure that a nominal payment represents
Q94: To correct a nominal quantity for changes
Q96: All of the following are real quantities
Q97: Suppose that Canada's official consumer price index
Q98: To compare the purchasing power of nominal
Q99: All of the following are nominal quantities
Q100: To ensure that your salary maintains its
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