Over the Past Year, You Earned a Nominal Rate of Interest

question 82

Multiple Choice

Over the past year, you earned a nominal rate of interest of 8% on your money. The inflation rate was 3.5% over the same period. The exact actual growth rate of your purchasing power was

• A) 15.55%.
• B) 4.35%.
• C) 5.02%.
• D) 4.81%.
• E) 15.04%.

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Definitions:

Preconscious

Part of Freud's theory of the mind, referring to the thoughts and feelings not presently in conscious awareness but that can be accessed easily.

Cognitive Factors

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Kelly

Referring to George Kelly, a psychologist known for his personal construct theory which posits that individuals interpret the world through their own constructs.

Life Narrative

The story of a person's life, told by themselves or another, highlighting significant events and experiences.