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MAP QUESTIONS
Instructions: Choose the letter on the accompanying map of the eastern United States that correctly identifies each of the following:
Boston, Massachusetts
Pure Rate
The real rate of interest that would exist in the market in the absence of inflation, default risk, and other factors that could affect nominal rates.
Pure Rate
The theoretical rate of return of an investment with no risk of financial loss, often considered as the base rate for determining risk-adjusted returns.
Inflation
The speed at which the average cost of goods and services increases, leading to a decrease in buying power.
Default Risk Premium
The extra fee a borrower is required to cover to reward the lender for taking on the default risk.
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