If You Have a Mortgage on Your House at 6

question 185

Multiple Choice

If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year;the current real interest rate is

• A)14 percent per year.
• B)6 percent per year.
• C)0 percent per year.
• D)-2 percent per year.
• E)8 percent per year.

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Definitions:

Positive Punishment

A form of behavior modification where something unfavorable is added after a behavior, with the intention of decreasing the likelihood of that behavior being repeated.

Observational Learning

Learning that occurs through observing the behaviors of others and imitating those behaviors without direct instruction or reinforcement.

Operant Conditioning

A process of teaching in which behavior modification occurs as a result of either encouraging rewards or imposing punishments.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses.