The Nominal Interest Rate Is 12 Percent and the Inflation

question 62

Multiple Choice

The nominal interest rate is 12 percent and the inflation rate is 4 percent.The opportunity cost of holding a dollar for a year is

• A) 12 cents.
• B) 16 cents.
• C) 88 cents.
• D) 8 cents.
• E) 48 cents.

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Definitions:

Nonresponse Bias

A bias in survey or research results occurred when individuals selected for participation do not respond, potentially leading to an unrepresentative sample.

Voluntary Response Bias

A bias in survey results that occurs when participants self-select to respond, leading to non-representative samples.

Undercoverage

A bias in statistics that occurs when some members of the population are inadequately represented in the sample.

Space Order

Refers to the organization or arrangement of elements in a visual field or a design project, emphasizing how objects are placed in three-dimensional space.