The Tendency for a Decision Maker to Search for Confirmation

question 42

Multiple Choice

The tendency for a decision maker to search for confirmation that a recent decision he or she made was a good decision represents which one of the following characteristics?

• A) Over-confidence.
• B) Over-optimism.
• C) Affect heuristic.
• D) Confirmation bias.
• E) Representativeness heuristic.

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Definitions:

Exchange Rate

The price of one country's currency expressed in terms of another country's currency.

Net Exports

The difference between a country's total value of exports and its total value of imports. Positive net exports mean a country exports more than it imports, while negative net exports indicate the opposite.

Brazilian Assets

Financial or physical assets located in Brazil, including but not limited to real estate, stocks, bonds, and other investments within Brazilian jurisdiction.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.