You Want to Earn a Real Rate of Return of 3.64

question 43

Multiple Choice

You want to earn a real rate of return of 3.64 percent at a time when the inflation rate is 2.84 percent.What is the approximate nominal rate which you must earn?

• A)6.48 percent
• B)6.66 percent
• C)6.68 percent
• D)6.74 percent
• E)6.81 percent

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Definitions:

Inducements

Incentives or rewards offered to employees or other parties to motivate desired behaviors or actions.

Attribution

The process of explaining the causes or reasons behind behaviors or events, often referring to the assessment of responsibility or blame.

Explaining Events

The process of providing reasons or causes for occurrences, aiming to make sense of why things happen in the way they do.

Psychological Contract

The unwritten and unspoken expectations, beliefs, and assumptions about the reciprocal obligations between employees and their employer.