Recall the Application About the Effectiveness of Committees in Making

question 71

Multiple Choice

Recall the Application about the effectiveness of committees in making decisions about monetary policy to answer the following question(s) . Former Fed vice-chairman Alan Blinder developed an experiment to see whether individuals or groups make better decisions, and who makes them more rapidly. The experiment tested how quickly individuals and groups could distinguish changes in underlying trends from random events, such as if a one-month unemployment rate increase was a temporary aberration or the possible beginning of a recession, and their decisions as to changing monetary policy as a reaction to the events.
-Recall the Application. The experiment conducted by Blinder showed that the actual process of having committee meetings and discussions

• A) tended to polarize the group into two distinct factions.
• B) improved the group's overall performance.
• C) magnified the individual group member's differences.
• D) related to the average performance of the individual group members.

---

Definitions:

Estimated Cost

A projection or approximation of the cost associated with a particular project, product, or activity.

Cash Payback Period

The time it takes for an investment to generate enough cash flow to recoup the initial outlay.

Net Cash Flows

The difference between the cash inflows and outflows in a company during a specific period, reflecting the company’s overall liquidity position.

Estimated Cost

An approximation of the cost to complete a project, task, or transaction, made in the absence of full information.