What is the difference between real money & nominal money?, Other Engineering

What is the difference between real money & nominal money? 

Moderate cash is relevant to the evaluate of keeping track of. nominal
figure is what is published on the expenses. where as actual money
relates to it's buying energy.
for eg:
if 10 systems in nominal cash can buy 2 sweets in 1980 and
1 dark delicious chocolate in 2000, in the same way, 10 systems of nominal
money is 10units of actual cash in 1980 and 5 systems of real
money in 2000.Nominal cash associates more to its evaluate of keeping track of - so nominal determine of what is published on expenses, while "real" associates more to its buying energy (usually between some times of time). For example 100 systems in nominal could buy 2 systems of excellent in 1950 and 1 device of excellent in 2005, as well actual value of this 100 nominal systems are 100 actual systems in 1950 and 50 actual systems in 2005.

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Posted Date: 3/31/2012 2:11:26 AM | Location : United States







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