Marcus Heard on the Radio That There Is a 50

question 36

Multiple Choice

Marcus heard on the radio that there is a 50% chance of rain today. Janis heard that there was 50% of clear skies. Who is more likely to believe that it will not rain today and why?

• A) Janis because of a belief bias effect
• B) Janis because of a framing effect
• C) Marcus because of confirmation bias
• D) Janis because of availability
• E) both equally because of inductive reasoning

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Definitions:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage of the principal.

Wealth Effect

The change in spending behavior by individuals or households due to a change in their wealth, often as a result of asset price changes.