Dr Cirillo Divided Her First-Period Class into Two Groups

question 161

Multiple Choice

Dr. Cirillo divided her first-period class into two groups. One group had to read 20 pages in a boring psychology text but would get 2 extra points on the next test. The other group also read 20 pages but were given 25 points added to the next test. The class members were then asked to tell the second-period class how interesting the book was. According to the results of the Festinger and Carlsmith study, what predictions could one make about the remarks of the first-period class?

• A) Both groups would say the pages were boring.
• B) The first-period class would say the pages were boring but the second-period class would not.
• C) Both groups would say the pages were interesting.
• D) The first-period class would say the pages were interesting but the second-period class would say the pages were boring.

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Definitions:

CDOs

Abbreviation for Collateralized Debt Obligations, a type of structured asset-backed security with multiple tranches.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options.

Negative Amortization

A situation in a loan where the monthly payments are not enough to cover the interest costs, causing the loan balance to increase rather than decrease over time.

Commission

A service fee charged by a broker or agent for facilitating transactions, such as in stocks or real estate.