The Nominal Rate of Interest in Russia Is 9

question 94

Multiple Choice

The nominal rate of interest in Russia is 9.5% and the inflation rate is 8%. The nominal rate of interest in Spain is 3% and the inflation rate is 1%. Which country has the higher real rate of interest?

• A) Russia
• B) Spain
• C) There is no difference.
• D) There is not enough information

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Definitions:

Law of Effect

A psychological principle suggesting that behaviors followed by satisfactory outcomes are likely to recur, while those followed by unsatisfactory outcomes are less likely to be repeated.

Satisfying Effects

Positive outcomes or feelings that result from fulfilling or exceeding one's needs or expectations.

Stimulus

Any occurrence or state that triggers a response from a biological entity.

Shaping

A method of behavior modification that involves reinforcing behaviors that are successively closer to the desired behavior.