A Secondary Effect of Installment Credit Was the

question 21

Multiple Choice

A secondary effect of installment credit was the

• A) development of a new market in used durables.
• B) emergence of a new network of dependable supplies of electric power.
• C) surge in prices.
• D) increased government intervention in household activity.

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Definitions:

Illusory Correlation

The phenomenon of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

False Uniqueness Effect

Refers to an individual's tendency to underestimate the commonality of one's abilities and one's desirable or successful behaviors.

Self-Fulfilling Prophecy

A prediction that ensures, by the behavior it generates, that it will come true.

Counterfactual Thinking

The psychological process of imagining alternative outcomes or scenarios that did not actually happen, often starting with "What if..."