Which of the Following Situations Is Most Likely to Lead

question 203

Multiple Choice

Which of the following situations is most likely to lead to the misinformation effect?

• A) Professor Weiss asked his chemistry students how terrifying the explosion was.
• B) Jared's mother asks him about his day at school.
• C) The police detective asked the witness to describe what happened.
• D) Danny asks his girlfriend what they had for dinner last night.

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Definitions:

Discount Rate

This term is used in various contexts but generally refers to the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Present Value

The present worth of a future total amount of money or series of cash inflow, based on a particular return rate.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments made over time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.