You Earn a 5% Real Return

question 272

Multiple Choice

You earn a 5% real return. If the inflation rate is 4%, what is your nominal return?

• A) 0.96%
• B) 1.09%
• C) 9.00%
• D) 9.20%
• E) 10.92%

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Definitions:

Previous Conditioning

The learning or training that an individual has received in the past, which influences their current behavior or reactions.

Evaluative Conditioning

A process where the qualities of one stimulus become attributed to another through association.

Classical Conditioning

An educational process where two stimuli are consistently paired together, resulting in a response initially triggered by the second stimulus ultimately being triggered by just the first stimulus.

Advertising Techniques

Strategies and methods used by companies and marketers to promote and sell their products, services, or ideas to consumers.