People Often Assume That It Is Necessary to Use All

question 25

Multiple Choice

People often assume that it is necessary to use all the numerical information provided in a problem to solve the problem.In reality,numerical information sometimes makes it more difficult to solve a problem.Why

• A) The information results in a mental set. 
• B) The information may be irrelevant. 
• C) The information puts unnecessary constraints on the problem solver. 
• D) The information encourages functional fixedness.

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Definitions:

Fiscal Policy

Government adjustments to its spending levels and tax rates to monitor and influence a nation's economy.

Monetary Policy

The process by which a country's central bank or monetary authority controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

Reserves

Vault cash and deposits of banks held by Federal Reserve district banks.

Deposits

Funds placed into an account at a financial institution for safekeeping and often to earn interest.