Judgmental and Decision Heuristics Are

question 14

Multiple Choice

Judgmental and decision heuristics are:

• A)a way of calculating computation costs.
• B)derived from the rational choice model but imply higher computation costs.
• C)rules of thumb that reduce computation costs.
• D)used to test the rational choice model when computation costs are small.

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Definitions:

Government Stimulus Package

A package of economic measures by a government aimed at stimulating a struggling economy by boosting spending and investment through various means such as tax cuts, spending increases, or lowering interest rates.

Depository Institutions Deregulation

The reduction or elimination of government regulations on banks and similar institutions to foster a more efficient and competitive financial environment.

Checking Accounts

Bank accounts that allow depositors to write checks against deposited funds for payments to third parties.

Reserve Requirements

Regulations set by central banks that determine the minimum amount of reserves a bank must hold against deposits, affecting the money supply.