Two Factors That Influence the Nominal Risk-Free Rate Are

question 3

Multiple Choice

Two factors that influence the nominal risk-free rate are

• A) the relative ease or tightness in capital markets and the expected rate of inflation.
• B) the expected rate of inflation and the set of investment opportunities available in the economy.
• C) the relative ease or tightness in capital markets and the set of investment opportunities available in the economy.
• D) time preference for income consumption and the relative ease or tightness in capital markets.
• E) time preference for income consumption and the set of investment opportunities available in the economy.

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Definitions:

Milgram's Original Experiment

A psychological experiment conducted by Stanley Milgram, which investigated obedience to authority and ethical boundaries.

Maximum Intensity

The highest level or degree of strength, concentration, or force that a stimulus or an activity can reach.

Shocks

Sudden, unexpected events or disturbances that can cause significant changes or adverse effects in a system or organism.

Shock Plate

A device typically used in experimental research to deliver a shock to an animal subject as a form of aversive stimulus.