Assume you buy some stock and its price rises less than the price level. What is the result of your purchase?
A) a nominal and real gain
B) a nominal and real loss
C) a nominal loss and a real gain
D) a nominal gain and a real loss

Question

Quizplus · Accepted Answer

If the price of the stock rises less than the price level, there will be a nominal gain (an increase in the number of dollars you have) but a real loss (a decrease in the purchasing power of those dollars due to inflation). Therefore, the best choice is D - a nominal gain and a real loss.

Assume You Buy Some Stock and Its Price Rises Less