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

What is the difference between real money & nominal money?

1) Nominal cash is related to the measure of counting. Moderate figure is what is written on the bill. Whereas actual cash concerns it's buying energy. for egg: if 10 systems in moderate cash can buy 2 sweets in 1980 and 1 chocolate in 2000, in the same way, 10 systems of moderate cash is 10units of actual cash in 1980 and 5 systems of actual cash in 2000.

2) The moderate cash has no purchasing energy, where as the actual cash has buying energy.

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Posted Date: 3/31/2012 2:47:41 AM | Location : United States







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