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Mathew is calm during exams and works hard on all school assignments-even when assignments are not going to be graded. However, his girlfriend, Maria, tends to have high feelings of anxiety in evaluative situations (especially when dealing with new information) and often performs poorly because of this anxiety. Discuss the underlying issues you think are most likely causing these two behavioral profiles and how these issues are related. Additionally, why do you think Mathew and Maria have developed these idiosyncrasies?
Real Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.
Nominal Interest Rate
The percentage increase in money that the borrower pays the lender, not adjusting for inflation.
Inflation Rate
The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, over a given period of time.
Purchasing Power
the value of currency expressed in terms of the amount of goods or services that one unit of money can buy.
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