Sam Deposits Money into an Account with a Nominal Interest

question 302

Multiple Choice

Sam deposits money into an account with a nominal interest rate of 4 percent. He expects inflation to be 1.5 percent. His tax rate is 20 percent. Sam's after-tax real rate of interest

• A)will be 2 percent if inflation turns out to be 1.5 percent; it will be higher if inflation turns out to be lower than 1.5 percent.
• B)will be 2 percent if inflation turns out to be 1.5 percent; it will be lower if inflation turns out to be lower than 1.5 percent.
• C)will be 1.7 percent if inflation turns out to be 1.5 percent; it will be higher if inflation turns out to be lower than 1.5 percent.
• D)will be 1.7 percent if inflation turns out to be 1.5 percent; it will be lower if inflation turns out to be lower than 1.5 percent.

Understand how attitudes can be changed and how they guide behavior in various social contexts.

Grasp the mechanisms behind social influence, including conformity, informational social influence, and normative social influence.

Explain the phenomena related to prosocial behavior, including altruism, and how social presence affects the willingness to help.

Understand the concept of attributional biases and their common types.

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Definitions:

Internalizing Problem

Psychological issues that are manifested inwardly, such as anxiety, depression, and withdrawal, as opposed to externalizing problems that involve outward behaviors towards others.

Externalizing Problem

Behaviors directed outwardly, typically involving conflicts with other individuals or society, such as aggression or defiance.

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Separation Anxiety Disorder

A psychological condition in which an individual experiences excessive fear or anxiety about separating from those to whom they are attached.