Suppose a Friend Asks You About the General Effectiveness of Psychopharmacotherapy

question 68

Multiple Choice

Suppose a friend asks you about the general effectiveness of psychopharmacotherapy. Which of the following would be the most accurate response?

• A) "Drug treatments are typically more effective when combined with psychotherapy."
• B) "Drug treatments are more effective than traditional psychotherapy."
• C) "Drug treatments are typically a waste of money and have almost no effect."
• D) "There are almost no well-controlled studies on the effectiveness of drug therapies."

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Definitions:

Annual Cash Inflow

Annual cash inflow is the total amount of money received by an individual or organization in one year from various sources, such as sales, investments, or financing activities.

Payback Method

A capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover its initial cost.

Time Value of Money

The principle that holding money now is more valuable than possessing the same sum at a later date because of its current potential to generate earnings.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.