Multiple Choice
You buy stock and its price rises just as much as the price level.Before taxes you made
A) a nominal and real gain, and you pay taxes 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
Correct Answer:
Verified
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