The Recency Effect Is the Tendency to Remember Old Contacts

question 96

True/False

The recency effect is the tendency to remember old contacts, and then evaluate them by comparing them with characteristics of recently observed people or objects.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted for inflation, indicating the real cost of borrowing or the real yield on an investment.

Capital Flight

The large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, reducing the nation's investment capacity.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance within a specific period.