You Bought Some Shares of Stock and Sell Them One

Multiple Choice

You bought some shares of stock and sell them one year later.At the end of the year,the price per share was 5 percent higher and the price level was 3 percent higher.Before taxes,you experienced

A) both a nominal gain and a real gain,and you paid taxes on the nominal gain.
B) both a nominal gain and a real gain,and you paid taxes only on the real gain.
C) a nominal gain and a real loss,and you paid taxes on the nominal gain.
D) a nominal gain and a real loss,and you paid no taxes on the transaction.