What Is the Appropriate Degree of Abstraction

question 205

Multiple Choice

What is the appropriate degree of abstraction?

• A)The more detail there is, the better.
• B)The detail should be minimized in order to avoid all complexity.
• C)Abstraction is unnecessary, and should be avoided.
• D)Abstraction is the essence of analysis, and is pursued for its own sake.
• E)It depends on the objective of the analysis.

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Definitions:

Purchasing Power

The value of currency expressed by the amount of goods or services that one unit of money can buy.

Inflation Rate

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

Compounded Quarterly

A method in which interest is added to the principal sum of a deposit or loan every three months, leading to interest on interest.

Compounded Monthly

Interest on an investment or loan that is calculated and added to the principal balance once a month, leading to faster growth.