The ABC Corporation Earned a Real Rate Return of 4

question 384

Multiple Choice

The ABC Corporation earned a real rate return of 4.5 percent on an investment. In the economy, the nominal rate of interest was 6 percent and the rate of inflation was 3 percent. We can conclude that

• A) the investment was unprofitable.
• B) the investment was profitable.
• C) the real rate of interest was 9 percent.
• D) the real rate of interest was 1.5 percent.

---

Definitions:

Highest Levels

Refers to the peak or utmost degree of any measurable factor, status, quality, or capacity in a given context.

Obedience to Authority

involves following the commands or instructions of someone in a position of power or authority.

Milgram

Refers to Stanley Milgram, a psychologist known for conducting experiments on obedience to authority figures, illustrating how people are willing to obey orders that conflict with their personal conscience.

Public Restroom

A restroom that is available to the general public, often found in places like parks, restaurants, and shopping centers.