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As a Result of the Financial Crisis, the Fed Has

question 148

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As a result of the financial crisis, the Fed has begun buying securities in troubled markets, as it has been trying to provide more credit to the markets and thereby mitigate the crisis. This is known as


Definitions:

Certainty Effect

The tendency for people to overweight outcomes that are certain relative to outcomes that are merely probable.

Entity Theorists

Individuals who believe traits and abilities are fixed and unchangeable.

Incremental Theorists

People who believe that abilities and intelligence can grow and change through effort and experience.

Feedback

Information given to someone about their performance or behavior intended to guide future improvements.

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