You Loaned $100 to a Friend for One Year at a Nominal

question 70

Multiple Choice

You loaned $100 to a friend for one year at a nominal rate of interest of 5 percent. Inflation during that year was 8 percent. How much did the purchasing power of your money change (an increase is positive and a decrease is negative) ?

• A) increase by around 3 percent.
• B) decrease by around 3 percent.
• C) increase by around 13 percent.
• D) decrease by around 13 percent.

---

Definitions:

Unconscious

Refers to the part of the human mind that is beyond awareness, holding thoughts, memories, and desires that are not accessible through conscious thought.

Resistance

The refusal to accept or comply with something; in a psychological context, it could refer to the opposition to change or the treatment process.

Maladaptive Habits

Behaviors or patterns that were initially adaptive but have become counterproductive to one’s well-being.

Group Therapy

The simultaneous treatment of several or more clients in a group.