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Which of the Following Statements Is TRUE About the Relationship

Question 161

Multiple Choice

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.

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