Some Form of Financial Distress Can Become a Full-Blown Recession

question 61

Multiple Choice

Some form of financial distress can become a full-blown recession if risk lead to ____ interest rates and ____ aggregate demand.

• A)higher; increased
• B)higher; decreased
• C)lower; increased
• D)lower; decreased

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Definitions:

Functional Fixedness

A cognitive bias that limits a person's ability to use an object only in the way it is traditionally used, hindering problem-solving.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering the ability to see alternative uses or solutions.

Insight

The capacity to gain an accurate and deep understanding of a person or situation.

Trial And Error

A method of problem-solving that involves testing various possibilities until a satisfactory solution is found.