The _______ Effect Occurs When Recent Events and Performance to Have

question 31

Multiple Choice

The _______ effect occurs when recent events and performance to have a disproportionately large influence on the rating.

• A) contrast
• B) recency
• C) halo
• D) horns

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Definitions:

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Total Taxes

The cumulative amount of taxes owed by an individual or corporation to the government, including federal, state, and local taxes.