Tara Deposits Money into an Account with a Nominal Interest

question 67

Multiple Choice

Tara deposits money into an account with a nominal interest rate of 6 percent.She expects inflation to be 2 percent.Her tax rate is 20 percent.Tara's after-tax real rate of interest

• A)will be 2.8 percent if inflation turns out to be 2 percent;it will be higher if inflation turns out to be higher than 2 percent.
• B)will be 2.8 percent if inflation turns out to be 2 percent;it will be lower if inflation turns out to be higher than 2 percent.
• C)will be 3.2 percent if inflation turns out to be 2 percent;it will be higher if inflation turns out to be higher than 2 percent.
• D)will be 3.2 percent if inflation turns out to be 2 percent;it will be lower if inflation turns out to be higher than 2 percent.

Grasp the concept and application of blocking in experiments.

Understand the importance of statistical significance in the interpretation of study results.

Define and identify response and explanatory variables within a research context.

Recognize the implications of not using a control group in experiments.

---

Definitions:

Parental Warmth

Describes the affection, support, and nurturing behavior exhibited by parents towards their children, which is crucial for healthy psychological development.

Secular Trend

a long-term pattern observed in data series over a significant period, indicating a general direction of change in society that is not attributed to seasonal or cyclical variations.

Nonindustrialized Countries

Countries that are less economically developed and not yet significantly involved in industrial processes.

Immaturity

denotes a lack of full development, whether in a biological, psychological, or emotional capacity.