When People's Incorrect Expectations Are Confirmed and They Relate to Other

question 54

Multiple Choice

When people's incorrect expectations are confirmed and they relate to other people in a way that brings about the very behaviours they expect, thereby confirming their original beliefs, then a has occurred.

• A) informational social influence
• B) social facilitation
• C) peripheral route persuasion
• D) self-fulfilling prophecy

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Definitions:

Internal Rate Of Return

The critical interest rate that nullifies the net present value of cumulative cash flows from a project.

Discount Rate

The interest rate charged to banks for borrowing short-term funds directly from the Federal Reserve, or broadly, the interest rate used to discount future cash flows to present value.

Average Account Rate

represents the average rate of return on an investment or portfolio over a specific period.

Crossover Rate

The rate at which two different projects achieve the same net present value, often used in capital budgeting.