Unanticipated Inflation Tends to Harm

question 21

Multiple Choice

Unanticipated inflation tends to harm

• A) people who save money in financial institutions.
• B) individuals who borrow money from financial institutions.
• C) businesses which borrow money from financial institutions.
• D) governments that have a progressive personal income tax.

Recognize exceptions to the Statute of Frauds that allow for the enforceability of oral contracts.

Understand the role of memorandums or notes in evidencing oral contracts and their requirements.

Understand the impact of third-party benefits in contract law, including when an agreement is enforceable by or for the benefit of a third party.

Recognize the role of the amygdala in memory processing.

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Definitions:

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors that affect the economic decisions of individuals and institutions.

Endowment Effect

A cognitive bias where individuals value an owned object higher than its market value simply because they own it.

Anchoring Effect

A cognitive bias in decision-making where individuals rely too heavily on the first piece of information (the "anchor") offered when making decisions.

Behavioral Economics

A field of economics that studies the effects of psychological, social, cognitive, and emotional factors on economic decisions.