You put money in the bank.The increase in the dollar value of your savings
A)and the change in the number of goods you can buy with your savings are both nominal variables.
B)and the change in the number of goods you can buy with your savings are both real variables.
C)is a nominal variable,but the change in the number of goods you can buy with your savings is a real variable.
D)is a real variable,but the change in the number of goods you buy with your savings is a nominal variable.

Question

Quizplus · Accepted Answer

The increase in the dollar value of savings is a nominal variable because it is measured in current dollars without adjusting for inflation. The change in the number of goods you can buy with your savings is a real variable because it reflects purchasing power, accounting for inflation.

You Put Money in the Bank