Hi Tutor

Which of the following statements are correct?

a. The nominal value of a good is its value in terms of some other good, service, or bundle of goods money while the real value is value in terms of money.

b. The nominal money supply is the money supply expressed in terms of its purchasing power in terms of goods.

c. A decline in the general price level results in an increase in the real money supply and more goods and services can be bought.

d. If the nominal money supply is R800 and the price level is R20, then the real money supply is 40.

e. Given the price level, the nominal money supply divided by the price level defines the real money supply.

1. a, c, d and e

2. Only c, d and e

3. Only a, d and e

4. Only b, d and e

5. Only d and e