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Suppose that the Federal reserve is concerned about the effects of rising stock prices on the economy. What could it do?
Alzheimer's Disease
A progressive neurological disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to perform even simple tasks, due to brain cell degeneration.
Proactive Interference
The phenomenon where old memories interfere with the recall of new information.
Hindsight Bias
The tendency to believe, after an event has occurred, that one would have foreseen or predicted the outcome, often referred to as the "I-knew-it-all-along" effect.
Memory Reconstruction
The process by which memories are not simply played back but actively reconstructed based on available information, perceptions, and experiences.
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