If Your Income Exceeds the Amount You Spend, You Should

question 112

Multiple Choice

If your income exceeds the amount you spend, you should ________ your investments or ________ loans.

• A) reduce; repay existing
• B) reduce; obtain more
• C) increase; repay existing
• D) increase; obtain more

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Definitions:

Scapegoat Theory

A social psychological concept that suggests individuals or groups are unfairly blamed for problems not of their making.

Mere Exposure Effect

A psychological phenomenon in which repeated exposure to a stimulus increases an individual's preference for that stimulus.

Ingroup Bias

Describes the tendency to favor members of one's own group over those from external groups.

Just-world Phenomenon

The cognitive bias to believe that the world is just and people get what they deserve, often used to rationalize injustice.