You Give Your Friend Instructions About What to Buy for a Party

question 129

Multiple Choice

You give your friend instructions about what to buy for a party by quickly rattling off fifteen unrelated grocery store items. Then to check whether your friend got all the information, you ask him to repeat the grocery list back to you. Based on the "magic number" identified by George Miller, you should expect that your friend will recall about __________ items.

• A)two
• B)fifteen
• C)four
• D)seven

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Definitions:

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Credit Markets

Financial markets where borrowers can obtain funds from lenders, typically through the issuance of debt securities or loans.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in industrial production, employment, real income, and wholesale-retail trade.

Increased Unemployment

A rise in the percentage of the labor force that is without work but available for and seeking employment.