If the Current Inflation Rate Is 4% and You Have

question 76

Multiple Choice

If the current inflation rate is 4% and you have an investment opportunity that pays 10%,then the real rate of interest on your investment is closest to:

• A)10.0%
• B)14.0%
• C)6.0%
• D)5.8%
• E)4.0%

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Definitions:

Consequences

The outcomes or effects that result from a particular action or set of conditions.

Punishment

The imposition of a penalty as retribution for an offense, with the intention of discouraging undesirable behavior.

External Locus

The belief that one's outcomes or fate are controlled by external forces or the environment, as opposed to internal factors or personal effort.

African American

An ethnic group of Americans with total or partial ancestry from any of the black racial groups of Africa.