You Bought Some Shares of Stock And, Over the Next

question 345

Multiple Choice

You bought some shares of stock and, over the next year, the price per share increased by 5 percent and the price level increased by 8 percent. 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.

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