In Which of the Following Situations Would You Prefer to Be

question 44

Multiple Choice

In which of the following situations would you prefer to be making a loan?

• A) The interest rate is 9 percent and the expected inflation rate is 7 percent.
• B) The interest rate is 4 percent and the expected inflation rate is 1 percent.
• C) The interest rate is 13 percent and the expected inflation rate is 15 percent.
• D) The interest rate is 25 percent and the expected inflation rate is 50 percent.

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Definitions:

Conscious Memory

memory that involves the awareness of remembering and which can typically be verbalized.

First President

Refers to George Washington, the inaugural President of the United States, serving from 1789 to 1797.

Explicit Memories

Memories that can be consciously recalled, such as facts and events.

Classically Conditioned

A learning process in which an association is formed between a previously neutral stimulus and a stimulus that naturally evokes a response.