If the One-Year Discount Factor Is 0

question 11

Multiple Choice

If the one-year discount factor is 0.8333,what is the discount rate (interest rate) per year?

• A)10%
• B)20%
• C)30%
• D)40%

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Definitions:

Selective Exposure

The tendency of individuals to favor information which reinforces their pre-existing views while avoiding contradictory information.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond appropriately to each.

Self-concept

An individual's perception of self, encompassing beliefs, attitudes, and perceptions of personal identity.

Self-actualization

Unleashing and achieving one’s innate skills and opportunities, believed to be a fundamental impulse present in every person.