Thabo and Jim Are Reading a Book Review About a Book

question 147

Multiple Choice

Thabo and Jim are reading a book review about a book that both of them have read.Thabo hated the book, and seems to feel that the reviewer also hated it.Meanwhile, Jim thought the book was witty and provocative, and he seems to think that the reviewer shares HIS views.It seems as though both Thabo and Jim are 'seeing' different things when reading the book review.That is, both of them seem to be engaging in the ____.

• A)confirmation bias
• B)self-fulfilling prophecy
• C)false consensus effect
• D)illusory correlation

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Definitions:

Money Supply

The total amount of currency and monetary assets within an economy at a specific time.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.

Lender of Last Resort

An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are deemed at risk of failure.

Financial Institutions

Financial Institutions are organizations such as banks, credit unions, and insurance companies that provide a wide range of financial services including deposits, loans, investments, and currency exchange.