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. Valerie spends all of her money on paperback novels and donuts. In 2010, she earned $18.00 per hour, the price of a paperback novel was $9.00, and the price of a donut was $2.00 Which of the following give the nominal value of a variable? Check all that apply. a Valerie's wage is $18.00 per hour in 2010. b Valerie's wage is 2 paperback novels per hour in 2010. c The price of a donut is 0.22 paperback novels in 2010.
