Ask Question
22 January, 14:53

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.

Rina spends all of her money on paperback novels and donuts. In 2009 she earned $14.00 per hour, the price of a paperback novel was $7.00, and the price of a donut was $2.00.

1: Which of the following give the nominal value of a variable? Check all that apply.

A) The price of a donut is $2.00 in 2009.

B) Rina's wage is $14.00 per hour in 2009.

C) Rina's wage is 2 paperback novels per hour in 2009.

+3
Answers (1)
  1. 22 January, 17:13
    0
    A) The price of a donut is $2.00 in 2009.

    B) Rina's wage is $14.00 per hour in 2009.

    Explanation:

    The nominal value of a variable is its monetary amount, in this case, in dollars which is susceptible to currency fluctuations and inflation. Therefore, statements A and B present the nominal value of a variable.

    When valuing a variable as an exchange for another good, that is assigning a real value to that variable since monetary changes won't affect the relationship between two goods.

    The answers are A) and B)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers