If the Current Inflation Rate Is 4

question 36

Multiple Choice

If the current inflation rate is 4.2% and you are earning a real rate of return on an investment of 3.8%,then the nominal rate on this investment is closest to:

• A)3.8%.
• B)4.2%.
• C)8.0%.
• D)8.2%.

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Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Self-actualization

Achieving or completing one's innate talents and possibilities, considered to be an intrinsic motivation or need in everyone.

Psychodynamic Theorists

Psychologists or theorists who emphasize the role of the unconscious mind, internal conflicts, and past experiences in shaping human behavior and personality.

Freud's Assumption

A reference to Sigmund Freud's foundational beliefs that unconscious motivations and childhood experiences significantly influence human behavior and personality.