you bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. before taxes, you experienced question 19 options: both a nominal gain and a real gain, and you paid taxes on the nominal gain. both a nominal gain and a real gain, and you paid taxes only on the real gain. a nominal gain, but no real gain, and you paid taxes on the nominal gain. a nominal gain, but no real gain, and you paid no taxes on the transaction.
