Stan Loves Junk Food and Eats It Every Day in Vast

question 117

Multiple Choice

Stan loves junk food and eats it every day in vast quantities. Stan's wife keeps telling him that research results show that he is killing himself with his diet, but Stan simply points to his grandfather who lived to be 92 and ate junk food most of his life. Stan is using _____ to justify his junk food eating behavior.

• A) means-end analysis
• B) illusory correlation
• C) person-who reasoning
• D) both person-who reasoning and illusory correlation

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Definitions:

Contractual Interest Rate

Rate used to determine the amount of cash interest the borrower pays and the investor receives.

Market Interest Rate

The rate investors demand for loaning funds to the corporation.

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Interest-bearing notes are debt securities issued by entities that accrue interest over time, payable to the holder at maturity or periodically before then.

Bonds

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