3. The classical dichotomy and the neutrality of
money
The classical dichotomy is the separation of real and nominal
variables. The following questions test your understanding of this
distinction.
Amy spends all of her money on paperback novels and mandarins.
In 2015, she earned $18.00 per hour, the price of a paperback novel
was $9.00, and the price of a mandarin was $1.00.
Which of the following give the nominal value of a variable?
Check all that apply.
Amy's wage...