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Rotter's empirical law of effect states that motivation is any condition or event that
Arbitrage
The simultaneous purchase and sale of the same assets or commodities in different markets to profit from unequal prices.
Well-functioning Market
A market where resources are allocated efficiently, information is freely available, transaction costs are low, and property rights are protected.
Nominal Interest Rate
The percentage increase in money that borrowers pay lenders, not adjusted for inflation.
Inflation
The pace at which prices for various goods and services climb, diminishing the value of money to buy them.
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