Assume You Buy a Stock and Its Price Rises Less

question 17

Multiple Choice

Assume you buy a stock and its price rises less than the price level. Before taxes, which of the following have you made?

• A)a nominal and real gain, and you pay taxes on the nominal gain
• B)a nominal gain and a real loss, and you don't have to pay taxes since you gained less than the change in the price level
• C)a nominal and a real gain, and you pay taxes on the real gain
• D)a nominal gain and a real loss, and you pay taxes on the nominal gain

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Definitions:

Habitual

Regularly done; based on habit.

Less Anxious

Experiencing reduced feelings of anxiety, stress, or nervousness.

Operant Chamber

In operant conditioning research, a chamber (also known as a Skinner box) containing a bar or key that an animal can manipulate to obtain a food or water reinforcer; attached devices record the animal’s rate of bar pressing or key pecking.

Confined Cage

A restricted space or enclosure used to hold animals, prisoners, or any subject within a compact area, limiting their movement.