Kate Is Attempting to Sell Her House for $260,000

question 47

Multiple Choice

Kate is attempting to sell her house for $260,000. Fred lives across the street in an identical house. Fred recently stated to his wife that Kate's house is probably worth only $250,000 but that once she sells her house, he would like to put their house on the market at $285,000 and then move into a condominium. Which one of the following behaviors applies to Fred?

• A) Myopic loss aversion
• B) House money effect
• C) Money illusion
• D) Self-attribution bias
• E) Endowment effect

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