What is the difference between real money & nominal money?
What is the difference between real money & nominal money?
Nominal money is related to the measure of counting. Nominal figure is what is written on the bill. where as real money relates to it’s purchasing power.
Examples:
Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year.
Real: A year of college costs about the value of a Toyota Camry. Those tickets to see Van Halen cost me three weeks’ worth of food!
