The Consumer Price Index Was 200 in 2006 and 210

question 224

Multiple Choice

The consumer price index was 200 in 2006 and 210 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?

• A)1.5 percent
• B)1.75 percent
• C)11.25 percent
• D)11.5 percent

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility, often occurring within groups and leading to uninhibited behaviors.

Zimbardo

Refers to Philip Zimbardo, an American psychologist known for his Stanford prison experiment, exploring the psychological effects of perceived power.

Crowd-as-group

A collection of individuals who are present at the same location or event, but act with a shared purpose or group identity.

Crowd-as-mad

The stereotypical view that crowds are irrational, emotional, and capable of violence, overlooking the potential for rational collective behavior.