Suppose That Over the Past Year,the Real Interest Rate Was

question 57

Multiple Choice

Suppose that over the past year,the real interest rate was 3 percent and the inflation rate was 1 percent.It follows that

• A)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 3 percent.
• B)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 4 percent.
• C)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 2 percent.
• D)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 3 percent.

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Definitions:

Situational Attribution

The act of ascribing an individual's actions to outside or situational causes.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or inherent traits rather than to situational factors.

Cognitive Dissonance

A psychological discomfort experienced when holding contradictory beliefs or values, often leading to a change in belief or behavior to reduce discomfort.

Foot-In-The-Door

A compliance technique where a small initial request is made which is easy to agree to, followed by a larger request.