Jake Loaned Elwood $5,000 for One Year at a Nominal

question 179

Multiple Choice

Jake loaned Elwood $5,000 for one year at a nominal interest rate of 10 percent.After Elwood repaid the loan in full,Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $5,000.From this we can conclude that the rate of inflation during the year was

• A)2.5 percent.
• B)6 percent.
• C)8 percent.
• D)14 percent.

---

Definitions:

Dissociative Identity Disorder

A severe form of dissociation, a mental process which produces a lack of connection in a person's thoughts, memory, and sense of identity, formerly known as multiple personality disorder.

Altered State

A condition of consciousness distinctly different from normal waking consciousness, often brought about by drugs, meditation, hypnosis, or extreme stress.

Executive Function

A set of cognitive processes including attentional control, inhibitory control, working memory, and cognitive flexibility, essential for reasoning, problem-solving, and planning.

REM Sleep

A phase of sleep characterized by rapid eye movement, increased brain activity, and vivid dreams. It is critical for processing emotions and consolidating memories.