Which of the Following Statements Is True

question 69

Multiple Choice

Which of the following statements is true?

• A)The rate of inflation is the difference between the real interest rate and a nominal interest rate.
• B)The real interest rate is the product of a nominal interest rate and the expected rate of inflation.
• C)The real interest rate is the difference between a nominal interest rate and the expected rate of inflation.
• D)The nominal interest rate is the difference between a real interest rate and the expected rate of inflation.

---

Definitions:

Concrete Operational Thought

Piaget’s term for the ability to reason logically about direct experiences and perceptions.

Formal Operational Thought

The final stage of cognitive development (according to Piaget), characterized by the ability to think abstractly, logically, and systematically.

Imaginary Audience

A psychological concept where an individual imagines and believes that multitudes of people are enthusiastically listening to or watching them.

Invincibility Fable

A cognitive bias often found in adolescents, believing themselves to be immune to common dangers.