Loftus and Pickrell Persuaded the Family Members of College Students

question 4

Multiple Choice

Loftus and Pickrell persuaded the family members of college students to tell stories about when their student relative was five years old, including one "story" that was actually fake and never really happened. How did the students respond?

• A) All the students were able to distinguish between the true stories and the fake one.
• B) About 25 percent of the students "recalled" the fake event.
• C) Students who were more suggestible "recalled" the fake event.
• D) About 90 percent of the students "recalled" the fake event.

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Definitions:

Straight-Line Depreciation

A method for distributing the financial commitment of a physical asset over its operational life in uniform yearly figures.

Capital Budgeting

The process by which a business evaluates and selects long-term investments based on their potential to generate net cash flows over time.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for taxes.

Working Capital

The difference between a company’s current assets and current liabilities, indicating the amount of liquid assets available to fund the company’s day-to-day operations.