Bob, Due to a Strong Work Ethic, Has Worked His

question 57

Multiple Choice

Bob, due to a strong work ethic, has worked his way up the ladder and would be considered middle class, which is reflected in his recent purchases. This is an example of

• A) psychological influences.
• B) social influences.
• C) personal influences.
• D) cultural influences.
• E) past experience influences.

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Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation; the stated or face interest rate on a loan or investment.

Real Rate of Interest

Real Rate of Interest is the interest rate that has been adjusted to remove the effects of inflation, providing a more accurate measure of the cost of borrowing.

Rate of Inflation

This refers to the annual percentage increase in the general price level of goods and services in an economy over a period of time.