If the Nominal Interest Rate Is Less Than the Rate

question 129

Multiple Choice

If the nominal interest rate is less than the rate of inflation, the real interest rate:

• A)will be less than zero.
• B)will be equal to the nominal interest rate.
• C)will equal zero.
• D)will be greater than zero.
• E)will be equal to the rate of inflation.

Recognize the phenomenon of automatic egotism and its effect on self-perception.

Grasp the role of the consistency motive in guiding individual efforts and attention.

Explain the self-reference effect and its impact on information processing and memory.

Compare the strengths and weaknesses of self-enhancement, appraisal, and consistency motives.