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We Interpret the Term Loanable Funds to Mean the Flow

question 131

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We interpret the term loanable funds to mean the flow of resources available to fund private investment.


Definitions:

Loftus

A cognitive psychologist known for her work on the malleability of human memory and the misinformation effect.

Misinformation Effect

The phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.

State-dependent Memory

The phenomenon that information learned in a particular state of consciousness is more easily recalled when in that same state of consciousness.

Proactive Interference

The phenomenon where old memories hinder the recall of newer memories.

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