Answer to Question #212229 in Macroeconomics for BONGIWE

Question

Which of the following statements are correct? a.The nominal value of a good is its value in terms of money while the real value is its value in terms of some other good, service, or bundle of goods. b.The nominal quantity of money is the quantity of money expressed in terms of its purchasing power in terms of goods.c.A decline in the general price level results in a decrease in the real quantity of money and fewer goods and services can be bought. d.If the nominal quantity of money is R500 and the price level is R20, then the real quantity of money is 25. e.Given the price level, the nominal quantity of money divided by the price level defines the real quantity of money.

Answer 1

A, D and E are the correct statements