Ophelia Has Seen So Many Violent Movies That She Has

question 92

Multiple Choice

Ophelia has seen so many violent movies that she has become desensitized to them. This means that she

• A) believes the world is a much more violent place than it is in reality.
• B) believes the world is a much less violent place than it is in reality.
• C) experiences more physiological arousal in response to new images of violence.
• D) experiences less physiological arousal in response to new images of violence.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return or discount rate.

Discounting

The process of determining the present value of future cash flows by applying a discount rate.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.

Simple Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.