You Bought Some Shares of Stock And, Over the Next

question 184

Multiple Choice

You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. 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, but no real gain, and you paid taxes on the nominal gain.
• D)a nominal gain, but no real gain, and you paid no taxes on the transaction.

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