If People Expect an Inflation Rate of 3

question 168

Multiple Choice

If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)

• A) 0.3 percent.
• B) 8.6 percent.
• C) 6.3 percent.
• D) 9.9 percent.

---

Definitions:

Arousal Level

describes the physiological and psychological state of being awake and reactive to stimuli, varying from low (unstimulated) to high (fully alert).

Darley And Latané

Psychologists known for their research on the bystander effect, highlighting how the presence of others affects an individual's likelihood to help.

Helping

The act of providing assistance or support to others, often to improve their situation or relieve distress.

Choke

To experience a sudden failure under pressure, often in a context where success was expected or required.