Other Things the Same,which of the Following Responses Would We

question 155

Multiple Choice

Other things the same,which of the following responses would we expect from an increase in U.S.interest rates?

• A)Your aunt puts more money in her savings account.
• B)Foreign citizens decide to buy fewer U.S.bonds.
• C)You decide to purchase a new oven for your cookie factory.
• D)All of the above are correct.

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Definitions:

Availability Heuristic

The availability heuristic is a cognitive bias that involves making judgments about the likelihood of events based on how easily examples come to mind.

Functional Fixedness

A tendency to think of things based on their usual functions, which may make it harder to solve a problem.

Framing

The way information is presented or worded, which can significantly affect decisions and judgments.

Insight

The capacity to gain an accurate and deep understanding of someone or something, often suddenly and intuitively.