Which of the Following Is NOT True of Long-Term Consequences

question 57

Multiple Choice

Which of the following is NOT true of long-term consequences with regard to social traps?

• A) The long-term consequences are often very small.
• B) Individuals are sometimes ignorant of the long-term consequences.
• C) Individuals do not consider the long-term consequences.
• D) The long-term consequences are usually negative.

---

Definitions:

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decrease in buying power.

Risk-free Rate

The expected return from an investment that carries no risk of losing money, commonly linked to government bonds.

Exchange Rate

The price at which one currency can be exchanged for another currency.

Uncovered Interest Rate Parity

A condition in which the difference in interest rates between two countries equals the expected change in exchange rates between their currencies, without hedging.