Imagine That You Borrow $5,000 for One Year and at the End

question 120

Multiple Choice

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%,what was the real interest rate you paid?

• A)16 percent
• B)12 percent
• C)8 percent
• D)6 percent

---

Definitions:

Helping

The act of providing assistance or support to others in need, often motivated by empathy, moral obligations, or the anticipation of reciprocation.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Zero-sum Game

A situation or game in which one person's gain is equivalent to another's loss, so the net change in wealth or benefit is zero.

Equity Norm

A principle of fairness in social psychology where individuals expect rewards and consequences to be distributed among group members based on their contributions or efforts.