You Borrow $20,000 at an Interest Rate of 6% to Open

question 27

Multiple Choice

You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.

• A) less than 6%
• B) exactly 6%
• C) greater than 6%
• D) It is indeterminate from the given information.

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Definitions:

Acceptance And Commitment Therapy

is a form of psychotherapy that uses acceptance and mindfulness strategies, together with commitment and behavior change strategies, to increase psychological flexibility.

Systematic Desensitization

A behavioral technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation paired with relaxation exercises.

Realism

A philosophy that emphasizes the representation of the world in a truthful, objective manner, without idealization.

Continuum

A continuous sequence, range, or whole extent of items, elements, values, or conditions, where no part is fundamentally different from adjacent parts, although the extremes are quite distinct.