Samantha and Carmine,like Many Couples,have Experienced Declining Satisfaction Over the Years.However,Samantha

question 66

Multiple Choice

Samantha and Carmine,like many couples,have experienced declining satisfaction over the years.However,Samantha is quite adamant that their relationship is "the best it's ever been!" How is this possible?

• A) Samantha has an enhancement bias.
• B) Samantha has positive expectancy biases.
• C) Samantha has a memory bias.
• D) Samantha makes positive attributions.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Discounting

The procedure used to calculate the present value of future income, which is inversely related to both the interest rate and the amount of time that passes before the funds are received.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.